Condos?

[NAJEE JAMERSON]

I'm looking to purchase my first investment property I wanted to know how are condos in Las Vegas NV? Would a condo be a good investment to start with? I'm trying to choose between a SFR or condo. My goal is to find a good rental property. Any advice would be greatly appreciated.

[Fred Heller]

@NAJEE JAMERSON As a general rule I tell clients to avoid condos. But a lot of that depends on whether or not your're financing the purchase. The HOA fees can be as much, if not more, than your mortgage payment, making cash flow an impossible dream.

I have one property management client who paid cash ($40,000) for a condo. The HOA fee is just under $300 a month, and the rent is $850. So she does see a respectable cash flow every month.

That respectable cash flow is dependent on not having any repairs in any given month. We have had to deal with some repairs that have eaten into the cash flow. There have been some months where she has barely broken even.