Owning just individual condos

[Andrzej Slugocki]

Does anyone own just individual condos in different places and what are the pro's and cons. I'm just starting in real estate and thought condos for rent would be a good start. Thanks

[Tyler Kastelberg]

@Andrzej Slugocki

My first properties were condos, and they saved me a ton of heartache when I didn't know what I was doing.

Why?

Condo HOAs cover lots of capital expenses that I wouldn't have thought about as a first-time investor in a SFR or small multifamily.

Condos have some downfalls:

1) Terminal Value - The terminal value (or future sale price) on a condo will be closely related to the surrounding condos. You can't implement an elaborate renovation and expect a large "above comparable" sale price

2) HOA Rules - Homeowner associations have rules that might restrict how you use and lease the property. Some HOAs restrict rentals to a certain number of condos in the community. Others have rules about the type of renovations or changes you can make to the unit.