Pros and cons of a condo for your first investment property ?

[Robert Nelson]

Experienced investors what are the pros and cons of investing in a condo or apartment for your first rental property or flip? I can see the cost to entry being a positive one but I am looking to weighing all the options and scenarios.

[River Sava]

Hey Robert - 

Condos and apartments can be a solid entry point due to lower purchase prices and potentially lower maintenance responsibilities, especially if the HOA covers exterior upkeep. However, HOAs can also be a double edged sword with fees, restrictions on rentals, or even special assessments.

For flips, condos might have less upside since you can't control the overall property value like you can with a single family home. For rentals, they can work well if the HOA is investor friendly and cash flow numbers make sense.

Financing can also vary, so it’s worth checking lender requirements for condos (warrantable v non warrantable) versus SFRs