The advantages that most condos provide is a lower maintenance factor as most keep up the exterior of the building, the roof, lawn maintenance/snow removal.. For a "seasoned property", as long as the numbers work and you look at the condo docs thoroughly, Though a property may be a good investment from a cash flow standpoint however from an ROE standpoint condos do seem to appreciate more slowly in a normal market than single family homes and may lose value quicker in a slow market due to more value being available with a high inventory of single family homes on the market. The bottom line is you have to do your homework and take a close look at all of the options in the market to determine what best fits your needs.
Best of luck!
Kevin P. Comerford
Real Estate Agent and REALTOR
Residential and Commercial Properties
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You may be able to find a good investment with a Condo but it is the same thing as finding a home with positive cash flow. You have to do your numbers, including taxes, condo fees, and what market rent is in that building. Also check to see what the condo fee includes, if it includes any utilities then you can offer your tenant a great incentive. Rent that includes some or all utilities, just hike up the monthly rent to cover it but make sure you are still making money. Try the Murano at 21st & Market right in the business district, it is going to auction on June 27th and you may be able to get yourself a great steal there.
For more details contact me at the below info.
Coldwell Banker Preferred
223-225 Market Street
Philadelphia PA 19106
WINNER OF 2008 COLDWELL BANKER ACHIEVERS SOCIETY AWARD
More importantly, don't buy in a brand-new building where it is impossible to know what the level of rents will be. I suspect many builders are pushing hard to find investors for condos they can't sell to live-in owners in the current market environment.
This depends on the location, how much you pay for the unit, and what your expenses are. The key is finding an opportunity that requires as little "out of pocket" money as possible.
A real estate professional can provide the insight you need to be able to mke an informed decision. Contact an agent today.
Good luck! Answers are always free by the way so contact me anytime!
Century 21 Princeton Properties
I presently own two condos which are rental properties, but also have owned other non-condo rentals. Here are some things to consider:
1. What will be your bottom line - rent income vs. expenses out. Condo fees to take up a part of that
2. If you own a non-condo, you have to factor in the cost of roof repairs, exterior building maintenance, snow removal, lawn care, etc. If you are not able to take care of these things yourself, you will have out of pocket expenses which could very likely add up to a condo fee.
Having owned both types of rental property, I must say that the condo is the easier way to go for me. I don't have to worry about shoveling the sidewalk, etc. in the bad weather. The lawns are always maintained, etc. Another issue is property values. In a condo situation, the exteriors are all maintained by the association, therefore, your property value is protected from having slovenly neighbors who do not take care of their homes.
If you can make the Dollars work, go for the condo. If there is anything else I can help you with, please visit my website at http://www.pahomesandloans.com.
Carol Murray Cei
The market I work in (Ocean City, Md.) has a significant number of condo properties that are purchased and used as rental properties. When I am looking at properties with a buyer, I can show them either what the property has generated in rental income in the past, or what the potential income would be, if that particular property has not been used for investment previously. I would compare the property we are looking at, to a similar unit in the same building.
A great feature for many purchasers is if there is existing rentals that the new buyer would be honoring. That ensures that the new owner is stepping right into an ongoing established revenue stream.
Know all of your expenses. Weigh that against the income, and see where you are. Remember those numbers do not count any tax savings you will receive for owning the investment property. So after your taxes you should do even better.
Have fun. Real estate can be a great source of passive income. Acquire properties, hang onto them, pay down the debt, and over time your rental rates will go up.
Please contact me if you have further questions or would like to view available properties to purchase. My wife and I are REALTORS in Philadelphia
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Philadelphia PA 19106