Condo's as Rental Properties

[Dave Kapsack]

Hi, Re-reading "The Book on Rental Property Investments" - Branden Turner , I hit on the section about potentially using Condo's as rental properties. I have always shied away from this due to the board rules and the HOA fee's. Upon re=reading it, some good points were made for going this route, such as minimizing capX and having someone around to "watch" the property.

Looking for thoughts on this? For those of you that have gone this route what has your experience been? What area's would be solid for this type of investment? 

[Phillip Dwyer]

@Dave Kapsack I manage several condo units for investors. I've helped people buy them for investment as well. Strength of HOA financials and upkeep of the complex are 2 big factors to look at during your due diligence. Usually HOA fees include some of the utilities, so consider adding utility charges as a line item on the lease to offset some of your HOA expenses.

You can also check out reviews from residences of complex online to see what they are saying about things like parking, amenities, ect.  

I think I would shy away from really small condo communities with lots of amenities, as the maintenance expenses are not spread over enough units making the risk higher for special assessments.

Otherwise, I think there can be decent price to rent ratios found in metros where SFR numbers don't look as good.