Condo/Townhome Investing in Houston

[John Cantu]

Hey everyone,

I've noticed a much bettter response rate when sending out direct mail from owners of condos and townhomes. It seems owners don't have nearly as much vested in the types of properties, which makes it easier to find the motivated sellers. I'm thinking about doing a campaign where I target only these types of properties. 

However, as a wholesaler I don't know many investors buying condos or townhouses. I know it's not the popular choice but it might be a good niche if there is some interest. Just thought I'd ask if there are any investors here in Houston who do actively invest in condos. With the increasing popularity of Airbnb, it might be a good time to start. 

John 

[Greg Scott]

All else equal, condos are not as good an investment as single family, which is why many investors avoid them.  Why?

 - HOAs often have restrictions on the % of units that can be rentals

- HOA fees can fluctuate (can you say "special assessment"), reducing the ability of the investor to gauge profitability

- Banks wont lend on a condo that has an HOA in litigation, which can make it a challenge to sell

 - It has the communal-living downside of an apartment, but without the economies of scale.