Real Estate Agent · Philadelphia · Member since 2015 · 41 posts · 39 votes
Hello Everyone,
I wanted to know if anyone has some good success stories on investing in condos for the long term. I am looking into buying a condo and renting it out next year but I wanted to hear some opinions on the posotives and negatives of investing in condos.
@Aristone Louxz I’ve done a couple of them. Sold them now and did well on the appreciation but will never do condos again. The dues eat you alive from a monthly cashflow perspective.
The question is too general. Every property whther it’s a condo or duplex or a 100 unit multifamily is a good investment if you buy it for the right price.
So, the only answer here is: it depends.
Normally condos come with a “high” association fee that generally eats a lot into your cash flow.
Appreciation wise it’s also hard to say. It depends on the timing.
If you hold it long enough then it will appreciate but that doesn’t make it a good investment necesarilly.
Also, what’s your goal? What do you consider a good investment?
Post 1980 construction condos have worked better for us than century old triplexes. Better quality tenants and fewer repairs. It is difficult to find condos where the numbers work, but if you do, they can produce solid returns with less work than other types of properties. We own four units in one complex. It is well managed and HOA costs are reasonable and predictable.
@Aristone Louxz as long as the investment cashflows you should be good. Check how often the HOA fees have been raised in the last 5 years, and have some buffer in case it going to be raised again shortly.