Thoughts on investing in condos?

[Kevin Hunter]

Hello BP team! I’m in the process of flipping my 1st investment property, multi-family property on south side. In my search for Future properties, I’ve come across condos that are able to be rented out...any thoughts on investing in condos? Is this a good idea, or should I avoid?

[Michael Henry]

@Kevin Hunter There are pros and cons of investing in any asset class. The important due diligence I think you need to do is make sure the association is managing the money properly and capital expenditures are being budgeted for. If not, the condo fee will increase more rapidly and obviously miss up your proforma. Other than that, they can be good investments because of the potential regularly upkeep of the exterior. You don't have to worry about snow removal and lawn maintenance with might enable you to forgo property management which will increase your ROI. This is all based on the quilty is the condo community and the association.

Lastly, sometimes the association has a cap on how many units can be rented out. Make sure you check that part of the condo documents.