New from Kingston, NH (advice on buying condo or house?)

[Christina H.]

Hi, My husband, Jeff, and I (Christina) are so excited and anxious to invest! We both see the potential for great income and to get our own house paid off, then save for retirement (we are only 35 and 40 but I'm not counting on social security). Now we are trying to narrow down how to start, so any advice is very appreciated. At first we wanted to flip but we both work full time so I'm not sure that's the best option to start. I'm very nervous to rent but it seems to be the best way as long as we luck out with good tenants. My first question is condo or house? and if we buy a condo, is there a property tax or is that included with the condo fees? any advice to help us make this decision and/or how to get started is appreciated :)

[Renee R.]

Hi Christina,

I'm also in your area and just starting out. While my plan was to buy duplexes, I found a deal I'm closing on soon--a condo in Plaistow with fantastic cash flow. Learned a lot in the past month!

The key to condos is knowing the HOA bylaws, rules and regs and financials. Also, be sure to get the assessment history so you know what will/won't likely need replacement soon--especially leach fields, roofs, siding and pavement. Don't let the assessments scare you; as an owner of any REI, you should be setting aside $$ for these things anyway. The HOA financials will show what they've already got set aside in capital reserves for major issues.

If you're financing, the owner occupied vs investor-owned ratio needs to be at least 51/49. Problem is, investors snapped up condos around here a few years back, so lots of the garden style complexes have too many investor-owned now. Not a problem if you're paying cash.

I highly recommend absorbing all you can from the BP resources. I've learned a ton.