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Shelly, Home Buyer in Laguna Niguel, CA

Is it easier to rent out a condo or a single family home? Which one would be a better investment?

Asked by Shelly, Laguna Niguel, CA Fri May 16, 2008

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In considering a condo -

There is an association fee that must be paid each month or quarter. How much is it? What does it include? And much can it go up each year?
Remember, as a landlord, that's one more hand in your pocket eating at your cash flow.
-What special assessments are coming up that owners will be responsible in helping pay?
-What are the association restrictions for the community? Are there age restrictions and pet restrictions?
-Does the condo association have to approve prospective tenants? And what is the criteria for a tenant?
-Per the association docs, what is the percentage of rentals to owner occupied units?

As mentioned, real estate markets are local in nature. Contact a knowledgeable agent in your area that owns investment property of their own and have them go over the pros and cons of owning single family vs. condo in your area.

Best wishes.
1 vote Thank Flag Link Fri May 16, 2008
It all depends on your local real estate market. Do you have more condos or more single family homes?
The price point makes a big difference also. You want an investment rental that is in a price range that is in demand. Location also always makes a difference. Best to have rentals in close proximity to you if you are going to manage them.
1 vote Thank Flag Link Fri May 16, 2008
ah...another good question. I own both. 8 rental properties. Its price driven. and bedroom driven. Why not post the two best options. One from the condos and one from the single family homes. A local realtor should guide you. In some areas a condo might rent out easier than a single family home. Sometimes you get a more stable renter in a single family home.
1 vote Thank Flag Link Fri May 16, 2008
It depends on what area(s) you are considering investing in. If you're in an area that is primarily single family housing with kids or an area where there are mostly single professionals and/or students and are close to businesses. Also, consider your time and money in regards to upkeep and maintenance.
1 vote Thank Flag Link Fri May 16, 2008
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