Non Warrantable Condo in Clemson

[Praneeth Nadipalli]

Hi All,

I'm doing some exciting work putting together a partnership to invest in some condos near clemson! Do any of you here have contacts for any lenders that might do a 30 year loan on a condo that is 90% investor owned (non warrantable). 

Any advice would be great!

Thanks,

Praneeth

[Cole Oraham]

@Praneeth Nadipalli In general, most communities are still doing pretty well even with the new construction. The most difficult thing about investing in condos is that they are all alike in the community. It is hard to differentiate yourself to a renter. You can do updates which can help to make your condo more attractive to prospects, but if you are buying in a community where rental rates are normally $400 per bed then your updates are not going to be able to justify charging $500 per bed (normally). The other difficult thing is that even if the community is at 95% occupancy, if you are the unfortunate owner in the 5% vacancy then you could be looking at 12 months of vacancy. Most leases are in place from August-July, and the vast majority of renters are students. So if you don't get leased in August then it can be extremely difficult to get someone in there after school starts.

All of this is not to downplay condos as an investment. There are quite a lot of investors who are in love with the Clemson market. I just wanted to make sure that you are aware of the risk before making the purchase. 

And lastly as a disclaimer, if you are in an agency relationship then please disregard all of this and consult your agent.