Is it smart to invest in 1 bedroom Condos?

[Ray Dixon]

I recently have came across a 1 bedroom 1 bath condo 900 sqft in excellent condition. Forclosure and its priced really low. The Hoa fees are 110 bucks a month which is extremely low. The cash flow on this property will be excellent. I want to use this property as a rental but im a bit worried because its a 1 bed room and im concerned about finding a renter. i would like to know what you guys think. should i look into it or keep on moving to another property?

[Paul B.]

Ray, this is a very specific question. There's no wrong or right answer. Having said that, I would never buy a condo, ever. But that's just me.

Give us some numbers. What will it cost? What will it rent for? Will you pay cash or borrow money? How much will you borrow?

Do you know what percentage of the building is investor owned? What other units are for sale? What has sold there recently? Find a Realtor with an active listing in the building and get on the phone.

It should be fairly easy to find out what the rental market is in your neighborhood. You could start by hopping on Craigslist and seeing what's available and for how much. Do you see a lot of 1BRs or only a few? What kind of people would want to live in that condo? Single person? Retired couple?

There's a rental market for almost any property if the price is right. It all begins and ends with the numbers. So, what are yours?