[quote=temeculaguy]Earlier today I wrote a long post about how I disagreed with the assertion that condos were bad and fodder for rookies, then I deleted it before posting because it seemed fruitless, like arguing religion with someone. Now I read sdr posted essentially the same thing from a different area and I decided to weigh in. My experience is anectdotal at best, a family trust with about 25 years worth of rentals that I do not control exclusively but stay abreast of it’s performance. I pay attention because I’m a self admitted geek and because the responsibility is inevitiably heading my way in short order. 7 or 8 properties, mostly sfr’s, spanning multiple cities and counties in so cal. Some have been added and some sold off over the years but the best ones have actually been condos and the top of the heap have always had HOA’s, contrary to what some have said. I realize that a great deal of research went into the HOA prior to purchase but by and large in this small sample, HOA properties held up better and made more profit over time.
Before anyone quotes me and bolds my words, I acknowledge that there are exceptions and horror stories on both sides of the aisle, but sfr’s can be horrific and non hoa sfr’s seem to attract a certain demographic that make for bad tennants and those same tennants are repelled by rule laden hoa condos. Maybe it’s a factor, maybe not, but like sdr, my real world experience runs against the grain. When I analyze and investment property, there is little emotion and lots of math. In a primary residence, that is not the case. The roi often beats the sfr. In my own primary I have some regrets because I could have bought two townhouses for the same price, or three for the same “net cost” and right now I would be up more than 100k in equity over my current situation and be cash nuetral with my two rentals paying for the one I lived in and themselves. But emotion played a role, I wanted to be happy, I wanted a big house on the hill and I could afford it and I am happy. I just cringe when I see sweeping generalizations against condos and even more so against home owners associations.
I’ve never been involved in an hoa, never even been to a meeting, yet my experiences from a financial aspect have always been positive and my non hoa experiences been negative, including sfr’s. I liken it to people’s bias about race and sexual orientation in others, using a broad brush never paints an accurate picture. Actually, the very fact that some people listen to “pearls of wisdom” creates an opportunity for you to find the hidden gems. Every hidden gem I’ve ever found in both real estate and in life has been because I ignored conventional wisdom.[/quote] Bummer you had to type it twice, but thanks for doing so to throw in your 2 cents.
