Someone Asked, is Investing in 1 Unit CONDO's a Good Deal? Answer

[Darius Kellar]

Many people will say that 1 unit condos in associations are not great deals because of some things like the association fees, limitations to adding to the structure and stagnant values. This is not true for all condo associations.

After buying a 1 unit condo as an investor I can vouch that for small investors sometimes these are excellent deals. The association that I am apart of charges a $230 dollar monthly association fee, which covers ALL exterior maintenance (except the doors and windows), water expense, gas expense, snow removal, lawn care, trash removal, repair on common lines like sewer/gas/electric, and all liability outside the structure. Landlord insurance was 14 dollars a month and property taxes are 45 bucks a month.

Pricing for the condos has already really jogged up. I’ve seen them in the recession for 20K and now they are selling at 79K, which is pretty good considering all the units are alike. The tenant only pays their electric bill and throughout the association rent ranges from 850 to 1050 a month. Keep in mind unlike a traditional single family investment, you will never have to worry about the expensive repair cost of a roof and broken piping because the association covers it.

Many associations are not FHA approved which means a home buyer will have to put down 20% to purchase it or just use their cash. After 20 years of the association being in business and just 6 months after I purchased my unit, the association were just 100% approved to accept FHA loans. Which will increase the possibility of the values to go up because they are easier to purchase with just 3% down.