Buying individual apartments in an apt buidling

[Justin Elliott]

Hi BP,

I found an off market deal in Minneapolis that consists of 7 units in a 65 unit apartment building. Lots of unanswered questions at this point that I will be finding out in the days to come but I'm curious, generally speaking what's everyone's take on owning individual apartments within a larger complex? Pros, cons? There are HOA fees and I'm still finding out which expenses are covered by whom.

Thanks,

Justin

[Amber Gonion]

They are not as easy to sell if you need to unload, average home appreciation over time is typically 4,7%, townhomes 3.4%, and condos are even lower.

Hoa fees can be bad, but it depends on the management company, we know which ones are are good and don’t get into financial trouble. Pm me I can tell you our opinion on yours. The good thing about the fees is that they cover some of the expenses lawn and plowing, much of the insurance, trash, sometimes water/sewer.

The big thing is to read the association bylaws concerning rentals, often they require owner occupancy for one year, or they a have limited number of rental units.