Buying a Condo as First Investment?

[Blake Reitnauer]

I am starting with around 100k and I am wanting to start in student rentals to lessen the worry of vacancy. My primary issue is that the price tag for off-campus student rentals gets around 200k-400k very quickly. My options for being in student rental territory have been reduced to buying an individual condo, and I am seeking some knowledge to test the viability of this idea.  My questions are:

1: Is the rental process any different than a free standing home? I'm mainly wondering if I can freely rent it out and set prices on my own, or if I have to pass through any red tape with the property managers. 

2: Are there any common extra expenses? (other than associated HOA fees)

3: If there is anyone who owns individual condos, is there a difference in the marketing to get tenants in the door? (opposed to free standing homes)

My local market is - Lexington, KY

Thank you for your help in advance!
 

[Jonathan Pliszka]

Hi @Blake Reitnauer - Greetings from Gratz Park in Downtown Lexington! The big thing here will be the HOAs as many have significant rental restrictions, etc. For example, financing can be difficult if a certain percentage of a building is tenant occupied versus owner occupied. As a result, many HOAs put a rental cap in place. 

Personally, I don't think a condo for a student rental is a good idea (unless you own the entire complex). You're likely going to have a HOA board fining you for tenant behavior (noise complaints, garbage, etc.) fairly regularly.