Investing in condos

[Damien C.]

I've heard a few people here mention their preferences for SFH's over condos as investments. And I believe some folks have justified this preference as a matter of control over their property--i.e., while the condo-owner is in full control of the unit, an association controls the building, etc. I imagine it is troubling to some investors when there is a special assessment, or when they simply do not like the building management.

I'm wondering about any other reasons for avoiding condos (perhaps issues with neighbors?). Also, I'd be interested to hear from folks who prefer to have condos in their portfolios.

Thanks!

[Cheryl C.]

I've got a bunch of condo's.  You really need to study the reserves before you buy and actually talk to the management company and/or a Board member about any upcoming assessments.  Also, find out the investor ratio.  Too many investors limits financing options and will result in problems selling.  I also ask how many units are behind in paying their fee's.  Walk around.  Is it nicely maintained?  What type of cars are parked there?  Are people "hanging around" during work hours? I like not having to worry about any exterior issues.   Many here don't like condo's and they probably have good reason.  I like them b/c they are easy to manage.  If you buy "right" and do your homework, condo's are fine - may not have the same return as SFD or Multi, but don't have some of the headaches either.