Condos in Wilmington, NC

[Hill A.]

Hello all, I'm searching for my first buy and hold properties in the Jacksonville and Wilmington areas of North Carolina. My partner and I have found two kinds of properties we are interested in and would like some advice. We have found quite a few REO properties as well as motivated sellers who are offering 3/2's below 50k that may or may not need work in these areas. Working the numbers on these with an excel spreadsheet my mentor helped me make (not a pro member yet!) I'm finding between 15-30% ROI and they cash flow between 200-300$/mo. On the other hand, we are finding lots of condos in the Wilmington area that on paper seem like a dream, for the same down payments and much less work these appear to cash flow 350-500$ per month (including HOA fee). Below is what I THINK the major drawbacks of condos are, but I would like input as to what the pros in this area think- as if they were such a dream I feel like they would be getting snatched up and not staying on the market for as long as they've been. 1- tenant turnover in college areas 2- much less appreciation 3- HOA/possible management issues 4- tenant quality, reading reviews of one of the condo complexes I see lots of complaints about the quality of people living there. Please give me some insight as to why these seemingly profitable properties are not getting picked up quickly and help me determine my best choice between them... We have saved the funds to buy 3-5 properties under 50k this year. Obviously since we're new that won't happen all at once, but we'd like to buy our first property in the next few months and would like to have some input so we can either shut down the idea of condos and focus on rehabbing SFH's, or consider both!

[Account Closed]

@Hill A. I've bought a few SFR in downtown Wilmington, NC in your price range. Most were bank owned, wouldn't qualify for mortgages, and needed some rehab - typically at least $10k in rehab, some more than $20k.

I think location is critical - I like to stick to properties and locations I'd be willing to live in. There are plenty of run-down houses on seedy blocks - I avoid those. I also rehab my properties to slightly higher standards - I like to attract better tenants, for hopefully less problems, less turn-over. These properties have worked out well for me.

I avoid Condos & HOAs for the reasons you listed. I like modest, but attractive, properties that will attract better tenants, I don't like issues with neighbors, high turnover, HOA restrictions, Condo fees, etc.

If you'd like a recommendation for an agent and property manager very familiar with less expensive Wilmington properties, I can highly recommend @Rachel De Faut. She was my buyer's agent for all my properties, and acts as my property manager. She also has contacts for rehab.

You can also message me with any questions.

PS Thanks for your service. Semper Fi.
Joe