Condos VS Single Family Homes

[Samuel Wilson]

Hi,

I plan to buy my First estate within the next year, I know that Condos are cheaper to buy usually than single family homes (and sometimes easier to upkeep). Family homes, on the other hand, seem to cost more but you have more control over the property value. I want to see what other people think is the smarter investment, and the better way to jump into real estate.

[Tom Parris]

Hi @Samuel Wilson,

Your answer depends on the market, so if the guys below vote SFH for Vegas, then by all means go that route.

I solely invest in condos, but that's my choice because of the pros associated with it. Each condo has different rules and regs, that can either promote or deter your investment. I chose mine because of the health of their HOA, the rules regarding the leasing and their watchful eye over my tenants.

In my market, condos rent faster than houses. They come with better locations, less maintenance, community amenities, and all in all less rent so the tenant thinks it's a better financial decision. That's why the longest my unit has been vacant is 24 days, and I had that person applied on day 7 of it's availability. Turnover is more common in condos, but that's not necessarily a bad thing. Turnover is healthy; it allows you to do the upkeep or upgrades in your unit to stay current with the market, and allows you to increase rent as you see fit without much headache. 

I see condos as an investment that also decreases your capital expenditures since you're only responsible for the inside of your unit. For me, that's the appliances, water heater and AC. I don't deal with the roof, windows, exterior paint, etc. I say that knowing my HOA is healthy, and that's not necessarily the case for all communities, so you have to do your homework before you buy it. The units also are lived in by less people. With a house, you'll have a family, and that means more people using all facets of your property more often. With my condos, I have a max of 2 people living in those units, so that significantly reduces my maintenance.

My HOA's are also on-site managers. They watch my tenant for me, so I'm in the know.

My condos are long term cash flow investments. They're properties that make sense for my laid back level of landlording.