How to invest in condo or townhouse and still get cash flow ?

[Anna Bee]

I’m first time investor interested in condo/townhouse investing due to housing prices in my state (WA). Is it possible to have cash flow if investing in one and if yes what should I pay attention to?

[Rick Albert]

Hey Anna,

Yes, it is possible (I have one).  Of course it depends on the loan terms, but I always recommend the following to my clients:

1. Ideally look for 3+ bedrooms. As people get priced out of SFR, they will have to go somewhere.

2. Look for fixers.  It doesn't cost much to fix up a condo.  Also as least in my market (Los Angeles) I'm seeing a big price gaps between done condos and fixer condos.  Not enough to flip but possibly for rentals.

Good luck!