The process is not difficult; however you will need to make at least 40% down payment + costs, or more.
One of the main advantages to investing in real estate is the ability to leverage capital, and so increase the overall return on your invested assets. So, in addition to the general HOA issue involved with condominiums, (including hidden problems such as inadequate reserves for replacements, commercial insurance, etcâ€¦), there is the additional dimension of financing to consider first.
Unfortunately, right now many condominiums, especially those purchased for investment purposes, do not qualify for low rate 'Agency' financing, or any financing at all. This is especially true here in Florida where many, if not most, condo associations are encountering problems related to non-payment of dues and feesâ€¦. which does and will continue to impact all of the share owners jointly.
While those problem can all be a benefit, in that the necessity for cash condo purchases has quickly deflated values and may present some attractive deals, it also increases your risk by tying-up more capital in only one particular property for an unknown period of time.
Whatever you decide, make sure you have your eyes-wide-open, and that you are working with someone experienced who understands, and can explain, all the financial issues which impact your investment decisions.
Palm Springs Realty (Commercial & Residential)
Licensed Real Estate Broker, Mortgage Banker, CPA (inact.)