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Jazzman.
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May 26, 2011 at 9:10 AM #700142May 26, 2011 at 9:43 AM #698988
Ren
ParticipantCondos usually give a better return than SFRs, even with $200+ HOA fees. And don’t forget what you get for those fees (new roof when needed, no need to pay a gardener $40/month, etc.). HOA and all other maintenance is deductable, as is depreciation of the structure itself. Condos are obviously more risky than SFRs, but not nearly as bad as most people think.
Some people also think that 1-bedroom condos are a bad investment – far from it. You can pick up a 1-bdrm apartment conversion in a college town for $70-80k that will give the same cash flow as a $200k SFR. Your tenants won’t stay as long as they would in a bigger place, but you’ll have no shortage of them.
Factor in HUGE maintenance costs just to be safe. The people who do this for a living claim 40% of rent over the very long term (decades), less for newer construction, and less for a condo, as some of the largest items are paid by the HOA. Don’t be one of those cheapskates who pays for apartment grade carpet every 5-10 years – some of the more expensive improvements (hardwood, granite) will literally last for 100+ years.
May 26, 2011 at 9:43 AM #699081ParticipantCondos usually give a better return than SFRs, even with $200+ HOA fees. And don’t forget what you get for those fees (new roof when needed, no need to pay a gardener $40/month, etc.). HOA and all other maintenance is deductable, as is depreciation of the structure itself. Condos are obviously more risky than SFRs, but not nearly as bad as most people think.
Some people also think that 1-bedroom condos are a bad investment – far from it. You can pick up a 1-bdrm apartment conversion in a college town for $70-80k that will give the same cash flow as a $200k SFR. Your tenants won’t stay as long as they would in a bigger place, but you’ll have no shortage of them.
Factor in HUGE maintenance costs just to be safe. The people who do this for a living claim 40% of rent over the very long term (decades), less for newer construction, and less for a condo, as some of the largest items are paid by the HOA. Don’t be one of those cheapskates who pays for apartment grade carpet every 5-10 years – some of the more expensive improvements (hardwood, granite) will literally last for 100+ years.
May 26, 2011 at 9:43 AM #699668ParticipantCondos usually give a better return than SFRs, even with $200+ HOA fees. And don’t forget what you get for those fees (new roof when needed, no need to pay a gardener $40/month, etc.). HOA and all other maintenance is deductable, as is depreciation of the structure itself. Condos are obviously more risky than SFRs, but not nearly as bad as most people think.
Some people also think that 1-bedroom condos are a bad investment – far from it. You can pick up a 1-bdrm apartment conversion in a college town for $70-80k that will give the same cash flow as a $200k SFR. Your tenants won’t stay as long as they would in a bigger place, but you’ll have no shortage of them.
Factor in HUGE maintenance costs just to be safe. The people who do this for a living claim 40% of rent over the very long term (decades), less for newer construction, and less for a condo, as some of the largest items are paid by the HOA. Don’t be one of those cheapskates who pays for apartment grade carpet every 5-10 years – some of the more expensive improvements (hardwood, granite) will literally last for 100+ years.
May 26, 2011 at 9:43 AM #699814ParticipantCondos usually give a better return than SFRs, even with $200+ HOA fees. And don’t forget what you get for those fees (new roof when needed, no need to pay a gardener $40/month, etc.). HOA and all other maintenance is deductable, as is depreciation of the structure itself. Condos are obviously more risky than SFRs, but not nearly as bad as most people think.
Some people also think that 1-bedroom condos are a bad investment – far from it. You can pick up a 1-bdrm apartment conversion in a college town for $70-80k that will give the same cash flow as a $200k SFR. Your tenants won’t stay as long as they would in a bigger place, but you’ll have no shortage of them.
Factor in HUGE maintenance costs just to be safe. The people who do this for a living claim 40% of rent over the very long term (decades), less for newer construction, and less for a condo, as some of the largest items are paid by the HOA. Don’t be one of those cheapskates who pays for apartment grade carpet every 5-10 years – some of the more expensive improvements (hardwood, granite) will literally last for 100+ years.
May 26, 2011 at 9:43 AM #700167ParticipantCondos usually give a better return than SFRs, even with $200+ HOA fees. And don’t forget what you get for those fees (new roof when needed, no need to pay a gardener $40/month, etc.). HOA and all other maintenance is deductable, as is depreciation of the structure itself. Condos are obviously more risky than SFRs, but not nearly as bad as most people think.
Some people also think that 1-bedroom condos are a bad investment – far from it. You can pick up a 1-bdrm apartment conversion in a college town for $70-80k that will give the same cash flow as a $200k SFR. Your tenants won’t stay as long as they would in a bigger place, but you’ll have no shortage of them.
Factor in HUGE maintenance costs just to be safe. The people who do this for a living claim 40% of rent over the very long term (decades), less for newer construction, and less for a condo, as some of the largest items are paid by the HOA. Don’t be one of those cheapskates who pays for apartment grade carpet every 5-10 years – some of the more expensive improvements (hardwood, granite) will literally last for 100+ years.
May 26, 2011 at 11:17 AM #699033bearishgurl
Participant[quote=Ren]Condos usually give a better return than SFRs, even with $200+ HOA fees. And don’t forget what you get for those fees (new roof when needed, no need to pay a gardener $40/month, etc.). HOA and all other maintenance is deductable, as is depreciation of the structure itself. Condos are obviously more risky than SFRs, but not nearly as bad as most people think…[/quote]
Ren, more often than not, a new roof in a condo complex is usually partially or entirely funded by a special assessment of the owners (esp in a small complex). As a condo-landlord, you would need to also factor in occasional special assessments, depending on the age and condition of the premises and financial health of the HOA.
May 26, 2011 at 11:17 AM #699127Participant[quote=Ren]Condos usually give a better return than SFRs, even with $200+ HOA fees. And don’t forget what you get for those fees (new roof when needed, no need to pay a gardener $40/month, etc.). HOA and all other maintenance is deductable, as is depreciation of the structure itself. Condos are obviously more risky than SFRs, but not nearly as bad as most people think…[/quote]
Ren, more often than not, a new roof in a condo complex is usually partially or entirely funded by a special assessment of the owners (esp in a small complex). As a condo-landlord, you would need to also factor in occasional special assessments, depending on the age and condition of the premises and financial health of the HOA.
May 26, 2011 at 11:17 AM #699714Participant[quote=Ren]Condos usually give a better return than SFRs, even with $200+ HOA fees. And don’t forget what you get for those fees (new roof when needed, no need to pay a gardener $40/month, etc.). HOA and all other maintenance is deductable, as is depreciation of the structure itself. Condos are obviously more risky than SFRs, but not nearly as bad as most people think…[/quote]
Ren, more often than not, a new roof in a condo complex is usually partially or entirely funded by a special assessment of the owners (esp in a small complex). As a condo-landlord, you would need to also factor in occasional special assessments, depending on the age and condition of the premises and financial health of the HOA.
May 26, 2011 at 11:17 AM #699859Participant[quote=Ren]Condos usually give a better return than SFRs, even with $200+ HOA fees. And don’t forget what you get for those fees (new roof when needed, no need to pay a gardener $40/month, etc.). HOA and all other maintenance is deductable, as is depreciation of the structure itself. Condos are obviously more risky than SFRs, but not nearly as bad as most people think…[/quote]
Ren, more often than not, a new roof in a condo complex is usually partially or entirely funded by a special assessment of the owners (esp in a small complex). As a condo-landlord, you would need to also factor in occasional special assessments, depending on the age and condition of the premises and financial health of the HOA.
May 26, 2011 at 11:17 AM #700212Participant[quote=Ren]Condos usually give a better return than SFRs, even with $200+ HOA fees. And don’t forget what you get for those fees (new roof when needed, no need to pay a gardener $40/month, etc.). HOA and all other maintenance is deductable, as is depreciation of the structure itself. Condos are obviously more risky than SFRs, but not nearly as bad as most people think…[/quote]
Ren, more often than not, a new roof in a condo complex is usually partially or entirely funded by a special assessment of the owners (esp in a small complex). As a condo-landlord, you would need to also factor in occasional special assessments, depending on the age and condition of the premises and financial health of the HOA.
May 26, 2011 at 11:19 AM #699038sdrealtor
ParticipantI personally prefer to buy 1 bedrooms. The returns are better as the premium to buy a 2 BR is bigger than the premium to rent a 2BR. you also eliminate roomate squabbles that leave you with a tenant who cant pay the rent. There is a large class of adults who are renters and always will be. those are my tenants. I ask them to be the tenant I want them to be and in return I give them a nice place to live as the landlord they want me to be. I dont jack them around on rent and they stay longer. vacancies and fix up costs can be a profit killer. At least that is what i have been doing so far.
May 26, 2011 at 11:19 AM #699132ParticipantI personally prefer to buy 1 bedrooms. The returns are better as the premium to buy a 2 BR is bigger than the premium to rent a 2BR. you also eliminate roomate squabbles that leave you with a tenant who cant pay the rent. There is a large class of adults who are renters and always will be. those are my tenants. I ask them to be the tenant I want them to be and in return I give them a nice place to live as the landlord they want me to be. I dont jack them around on rent and they stay longer. vacancies and fix up costs can be a profit killer. At least that is what i have been doing so far.
May 26, 2011 at 11:19 AM #699719ParticipantI personally prefer to buy 1 bedrooms. The returns are better as the premium to buy a 2 BR is bigger than the premium to rent a 2BR. you also eliminate roomate squabbles that leave you with a tenant who cant pay the rent. There is a large class of adults who are renters and always will be. those are my tenants. I ask them to be the tenant I want them to be and in return I give them a nice place to live as the landlord they want me to be. I dont jack them around on rent and they stay longer. vacancies and fix up costs can be a profit killer. At least that is what i have been doing so far.
May 26, 2011 at 11:19 AM #699863ParticipantI personally prefer to buy 1 bedrooms. The returns are better as the premium to buy a 2 BR is bigger than the premium to rent a 2BR. you also eliminate roomate squabbles that leave you with a tenant who cant pay the rent. There is a large class of adults who are renters and always will be. those are my tenants. I ask them to be the tenant I want them to be and in return I give them a nice place to live as the landlord they want me to be. I dont jack them around on rent and they stay longer. vacancies and fix up costs can be a profit killer. At least that is what i have been doing so far.
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