Updated about 9 years ago on . Most recent reply
Office condos for cashflow?
I am planning and researching my first real estate investment. Lately, I've been drawn to the idea of office condos for cash flow.
My plan would be to purchase an office condo somewhere in the neighborhood of 1000-1500 square feet and subdivide it into 3-4 individually rentable offices for professionals and other small businesses in need of single offices.
Has anyone dealt with an office condo? What are the drawbacks to this plan?
Thank you for the help!
Most Popular Reply
I purchased an office condo about 3 and 1/2 years ago. I have it rented to one tenant only ( maybe less money but also less to deal with since I only have to follow one lease ). My condo is however in the DC area, in Maryland and is giving me a much above average return ( for this area ) of 9%
The advantage compared to a single family house or a residential rental is that there is little that can go wrong: All I am responsible is a toilet and the HVAC unit. The disadvantage is if the tenant leaves it takes a long time to find a new one. Also I have been looking for another with the same returns for a long time now and I was unable to find one.