Condos VS SFHs

[Daniel Hornsby]

Good afternoon BPers,

I am looking through the list I purchased from Listsource and there are a lot more condos than anything else. I did not expect to see so many and I am a little concerned about this. This question is mostly directed at Landlords and Rehabbers:

If you had a wholesale deal presented to you for a condo, would you look at it?

I realize it boils down to the numbers and location and etc. but, my understanding was most everyone only wanted SFHs and MFRs.

Should I care about this and weed them out or should I just send my mailers out to everyone on my list?

Thanks!

[Brian Ortins]

I primarily invest in condos, but do agree with Al. I invest based on the HOAs before evaluating the actual unit. If the reserves are healthy with no large repairs in the near future, I then proceed to evaluate the necessary repairs in the unit, such as flooring, kitchen and bath. I do more than 50% of the repairs myself to save on upfront cost to acquire. I purchase condos to rent or flip (have not been successful at flipping within first 2 years of ownership), so I make sure that there is not a "NO RENT" clause, and must consist of a minimum of 2 bed 1 bath with less than $300 in monthly HOA and less than $1200 in yearly property taxes. My current investment condo was purchased for $65k in 2009 and has rented for $1150 a month with $375 in monthly HOA fees (includes heat, hot water, dumpster, snow removal) and $1175 in annual property taxes. I have had offers from investors to purchase the condo for around $96,000. I would be happy to discuss my strategy further or would also appreciate feedback from other investors regarding my strategy.