Pros and Cons to flipping a distressed Condo / town-home vs SFR

[Kevin Ely]

Th average SFR distressed in San Diego can be quite high (often more than $500k which also often means higher returns post rehab) but condos / town-homes are not as expensive ($150k-$250k) and as such, are more attractive for someone relatively new to the game AND using a HML versus all cash. What advice can you give in flipping a condo vs a single family residence? Pros and Cons? I see an HOA as a major Con possibly prolonging the process digging into profitability. Anything else to look out for?

[Mayer M.]

I actually prefer condo/townhome flips. I have done 5 recently see below:

#1 - bought for $51k and sold for $119k. Net profit was $35k
#2 - bought for $50k sold for $109k. Net profit $22k
#3 - bought for $58k sold for $97k. Net profit $17k
#4 - bought for $95k sold for $172k. Net profit $23k
#5 - bought for $156k sold for $207k. Net profit $28k.

I happen to love condos/townhomes because I am not responsible for exterior items such as roof, siding, landscaping, etc. they also require very minimal investments and minimal risk exposure. I have only been doing flips for about a year and am profitable, but not sure if the above numbers are considered great in this field. None of the above properties took longer than 4 months from purchase to resale.