My colleagues have pretty much covered the expenses, but don't forget to put something aside every month and every big check you get to buy the next property.
Hector R. Gastelum
Realty Executives Dillon
The nice part of owning a condominium is that much of the exterior maintenance is covered by your HOA fees. This also covers insurance on the structure itself in most cases.
It is recommended that you have liability insurance in case someone should be injured on the property or if somehow your unit is responsible for damage to others. Instances of this may be water damage or fire that originates in your unit.
You may also have management expenses if you use a property management company.
In addition you should have a reserve set aside for repairs on the appliances as well as usual wear and tear on the unit. 3-5% should be adequate for that.
If you are not yet working with a Realtor, I would be glad to help you find an investment property.
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Association fees for condos vary, depending on the location, amenities the condos may have but they're usually uniform; In some places, association fees cover water, sewer, basic cable, insurance on the outside premises of the condo and/or building, and on-site management or grounds keeping; purchase an insurance for the inside of the condo and your belongings may be purchased separately; usually, electric bills are lesser in a condo as compared to a single family residence (SFR) that may have more rooms; Just like SFRs, additional expenses in a condo is the property tax, which in most cities, is 1% of the value of your condo.
Hope I am able to answer your question. Good luck on your investment!
I own a few condo rentals and I frequently work with investment buyers looking for a suitable rental property. I can tell you that you expenses will vary based on the property. That being said, there are a few factors to look for that will reduce your expenses.
I recommend that my investment buyers purchase newer condos, in safe areas with low hoas and no mello Roos. So typically my investors expenses end up being the hoa fee, property taxes, homeowners insurance and general maintanence which tends to be very low in newer condo complexes. In addition, some of my clients choose to use a property management company, others manage the unit themself. Remember, all these expenses can be write offs for taxes! Which is a huge benefit!
Please feel free to contact me with any additional questions or concerns! I'd be happy to send you some listings that might be good rental units. Just let me know!