Would you invest in a condo in Houston, Texas

Question

Would you invest in a condo in Houston, TExas? What items are usually covered by HOA? Since the repairs are usually covered by the HOA fee, do the repair costs compare to a standard sfr or do the overall expenses generally end up being more?

Nancy Truong · Answer

Condos are harder to sell. This partly has to do with the higher HOA fees. As stated above HOA fees varies in services but usually covers exterior building, common area, roof.

Matthew Rolf · Answer

@Ben M. it can vary between condo associations, but generally roof, grounds, common areas (including amenities), structure will be covered.  Sometime painting or resurfacing front door etc will be covered.  Things pertaining to the individual unit such as HVAC, water heater, anything interior would be the individuals responsibility.  If you ever need help looking at individual condos, I'm local here in Houston and would be happy to help.

Carlos Ptriawan · Answer

-Check if HOA fee is reasonable compare to other HOA in same neighborhood.-Check how many 'rental' allowed in the HOA, this is extremely important, you don't want to buy condo where rental is not permitted- The condo appreciation and cash flow are really dependent on the school and neighborhood class/city/state wide.- If it's on class A and A school rating, the appreciation for that condo could be higher than even SFR. Why ? because everyone want to buy on the same complex, condo is cheaper than SFR. I give illustration, back 5-6 years ago, the condo in this area is 500k, comparable SF is 800k. Now 2021, the condo is 1 million and SF is 1.4-1.5m. Not much different.- However if your HOA is in bad school district, that's meh factor- I myself will buy condo for myself in good school district. Why ? because renter and tenant are very crazy about school district, and if they like it they will rent your place forever.- so Yes I will invest condo in Texas since it's located in appreciated city but the most important factor is the school district and HOA regulation.- Your zillow estimate is your friend, forget what people said about HOA, zillow chart is your friend.

Eliott Elias · Answer

Exterior repairs are covered by condo, interior is your responsibility. I don't like investing in condos because appreciation is weak and the HOA is a killer for your cash flow and when you have vacancy

Wale Lawal · Answer

Majority of the investors I work with look for properties without HOA, and every HOA is different as far as coverage.

If I were you, I recommend staying away from condos, or is there any specific reason you are looking into condos?

Matt M. · Answer

I wouldn’t invest in anything with a HOA

Would you invest in a condo in Houston, Texas

Most Popular Reply