Condo rentals go or no go?

[Shane H.]

Who is running a business with primarily condo rentals? What are the pros and cons? It intrigues me a bit, because ypur maintenance is limited to what's inside the door from my understanding. (I currently live in a place where there is almost 0 condo market, I honestly didn't even understand how they worked in the least before taking a real estate course.)

I would guess.

Pros

Less maintenance

More qualified renters

Cons

Monthly fees

Less control

[Michael Glaspie]

I don't personally own condos for the following reasons:

• Monthly HOA fees typically reduce cash flow significantly
• Special Assessments could wipe out any reserves and there is no guarantee that the neighboring owners will pay their share.
• HOA's are all managed differently. I would need a strong understanding of the HOA members and practices to feel comfortable that they are managing them appropriately.

However, you are right in regards to low maintenance and everything inside the walls is your responsibility. If they are cash flowing and the HOA is responsible I think it could be a convenient investment. Many other investors use condos and townhomes as a primary vehicle for investments.