What is your formula for a buy and hold condo

[Ric Mittleider]

Buy and Hold people, I'm curious, What do you consider a good deal on a condo considering the market is so tight?  Are you looking for rehabs to keep the price low or would you rather have a place with a tenant in place. do you expect to get it below market as is and if so how much?  How are you going about investing is this highly competitive market? or are you just waiting for the down turn?

[Michael Haas]

I'm a buy and hold investor as well, and my formula for buying condos is...

Don't buy condos.

Sure, purchase prices are lower and they're pretty low-maintenance rentals, but most of your creative layout and leasing options are gone with a condo, and the returns I look at in Seattle for condos are abysmal. Add to that the risk of rental caps, picky neighbors, and an unpredictable condo board and I don't see any reason to put my money to work there. STR returns tend to be better, but then the risk of the HOA destroying your investment becomes even higher.

Condo boards are not typically made up of investors, and do not typically have investors best interest at heart. I think that's putting it generously :).