Thoughts on Buying and Holding A One Bedroom Condo in Sacramento

[Arkady Itkin]

Hello everyone. I live in SF but commute regularly to Sacramento for work. I am familiar with the area but not on a real estate level. Looking to make a modest $150-$200 investment into a one bedroom condo near Arden. The average HOA fees are about $300-$400. Looking for thoughts whether this is a good idea for buy / rent /hold and potentially live in the future if need be. If not, what are better alternatives? Thanks a lot!

[Penny Clark]

@Arkady Itkin, I would agree with Gordon's response. Before purchasing, you'll need to know if the HOA has restrictions or a percentage limit on non owner occupied units - this includes leasing it as a short term rental. Some HOAs are rewriting their bylaws to prevent owners from exercising this option which can be much more lucrative than a long term lease. You'll also want to know the available operating reserves for capital improvements or maintenance of the HOA and community rules and regulations before closing the deal. Going with a SFH gives you more options without these limitations . Best of luck!