Building townhouses for rent or sell them as condos

[Mark Koski]

I plan to build 12 town houses. Two sets of six. I am wondering if it is worth looking into setting them up as condos with an association versus just doing long-term rentals. I have experience with long-term rentals but I’ve never done anything as far as setting up a condo. The real estate market seems like it would support selling the condos. Any advice?

[Payton Chung]

Agreed with Seth: you're much better off just building it as a subdivision of fee-simple townhouses, rather than as condos on a single lot. It saves legal work for you and the eventual purchasers, and since it reduces their monthly fees it indirectly increases the initial prices.