Home Buying in Austin>Question Details

Charles, Home Buyer in New York, NY

Is it simpler to invest in a Condo than a house (rented out and mananged by someone else)? What are the pros and cons?

Asked by Charles, New York, NY Sat May 11, 2013

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Bruce Lynn’s answer
Condos typically don't work great as investments.
The HOA typically just kill your profit.
Single family tends to work much better.

Often the purchase price vs rent doesn't work well with condos either in Texas.

Find a good 3/2/2 with rent that matches salaries in the area. You'll likely have a bigger market, less headaches, and better returns.

The main difference might be price points. There are one bed/one bath condos around that may sell less than a 3/2/2 house. It's hard if not impossible to find a house for the same price as a 1/1/1 .
0 votes Thank Flag Link Mon May 13, 2013
Bruce Lynn, Real Estate Pro in Coppell, TX
Primarily the difference in the two are simply maintenance. You may want to find a house that has a sprinkler installed so it is easier for tenant to keep up with lawn care. Counting on tenants to water a yard properly is a stretch.

And, watering a yard properly can be an expense.

Either way, its all about the margins, as I mentioned in my other post to your other question.

Location of town will also play a role in strategizing because some areas can appreciate faster and hold stronger later.

There's another secret too. How to get 10-30% higher rents, tenant after tenant.
I'll share that with you if you were to inquire.
Web Reference: http://shawnmon.com
0 votes Thank Flag Link Sun May 12, 2013
Hi Charles - Your questions are excellent. There is no real difference except the condo association fee that is paid monthly. Condo's in the Austin area typically have association fees that are paid by the tenant monthly. These included water/wastewater and grounds keeping. When you have a rental home and it is managed the tenant pays for all utilities and takes care of the yard. This is all outlined in the lease. So... the short answer is no, they are both the same and the same process is used. Best wishes, Laura Rosales
0 votes Thank Flag Link Sat May 11, 2013
Charles, very good question and the answer is quite lengthy, especially depending on your investment goals. Feel free to call me and we can discuss which way might be better for you, depending on what kind of return, etc. you are expecting. I also answered your other question as well…

Joe Jarusinsky, Realtor/Master Instructor, Keller Williams Realty, Austin's #1 Real Estate Company, Ranked #1 by Buyers and Sellers (JD Power & Assoc. 2012) Call 512-261-4415
0 votes Thank Flag Link Sat May 11, 2013
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