Condominium for Investment

[Ken Singh]

What are the issues with buying condominiums for rental income? Are they even suggested? Could I be  just roaming around wrong cash flow investment. What I am sensing from Condos is very low prices (including community dues), management takes care of them, and much more cash flow. But there must be something, which is making their price lower. I am thinking of buying a condominium for low price but I am also afraid if I am making a wrong decision..

[Upen Patel]

@Ken Singh The seller will give you the condo disclosure docs once you put in an offer, but that will not answer if the condo is warrantable. For that you will need to request the condo questionnaire from the condo association. For this they will charge you a fee. Be sure to not order a generic condo questionnaire. Most lenders want their questionnaire to be filled out.

So, find a lender that can do ALL condos (warrantable and non-warrantable). Sometimes they might be able to tell upfront if its non-warrantable. Else you can use their condo questionnaire and let the lender determine if they can get you a conventional loan for the purchase.

Condo financing is very tricky and a pain. A lot of lenders will say Yes without knowing the facts and then deny your loan once they get the details.

Good luck.