Condos

[Roberto Lebron]

I just want to know pros and cons on buying and renting a condos out. Especially ones next to colleges in nyc ( Columbia U)

[Stephen E.]

I rent condos and have always been puzzled by the complaints about condo fees and cash flows. It is not as if SFHs did not come with their own set of negative cash flows: roof, furnace, doors and windows all need repair or replacement. Also in my jurisdiction the landlord is responsible for lawn care and snow removal. A condo fee covers all of this. These are not avoidable expenses whether you own a SFH or go with a condo. It has to be paid for somehow.

One of the best books I have read on real estate put it simply: rental property is cheap property. Tenants generally have lower incomes and cannot afford deluxe places. Two bedroom apartment condos and townhouses seem to be what works best in my experience. Yes, there are monthly fees, but in exchange for that there are a lot of things that I do not have to worry about by and large. This reduces active management requirements and means I can manage more properties in the time I have available because I am only responsible for the sheetrock in. One way or the other, these things have to be paid for. People who think they can escape the negative cash flows that a condo fee covers are dreaming.