Good point about location svelte. Bad tenants and lot’s of turnover can absolutely destroy real estate as an investment. The hard part is getting the numbers to work in good areas. Nice areas have high prices where rents don’t cover the PITI + maintenance, and then you have negative cash flow.
Yes Russell I agree SFR’s are better overall as an investment. It’s just right now in San Diego you can get condo’s in better areas for lower cost per unit. And I personally like the less maintenance involved with condo’s as I am not very handy with fixing stuff.
But you have to be really careful researching the HOA’s with condo’s. If the owner occupancy % goes down in condo’s, a high % of the HOA dues are delinquent, or reserves get low…no one can get a loan to buy a unit in the condo & value stagnate. Also, if a lot of investors buy units at one time in a condo project and turn them all into rentals, it can have bad effects.
