I am planning to buy a condo for investment. The condo is short sale so it's affordable.

Asked by Tim, Redmond, WA Tue Feb 5, 2013

There is no rental cap now, but HOA said that they will have one in 1-2 years. Should I go ahead to buy it, or anything negative that I should be aware of? i am hesitating now, since I am a single person, and may not have enough time to taking care of rental business. The condo is in 1980's and condition is ok.

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6
Karen Mcknig…, Agent, Kirkland, WA
Thu Feb 7, 2013
HI Tim,

You want to be sure to do a Return on Investment analysis of the condo you are planning to buy. On any condominium, I think you are best off if it is professionally managed. If not, make sure there are plenty of reserves for major repairs - like roofing, siding, plumbing.

Since you are busy working, you would be wise to hire a professional property manager who understands it is his job to maximize your investment. The fee is definitely worth it, because it frees your time, a professional property manager is in the business every day, has resources and good rates for repairs, knows when to increas the rent, provides tight lease agreements and does full background checks.

Warm Regards,
Karen
Web Reference:  http://www.karenmcknight.com
0 votes
Tim, Home Buyer, Redmond, WA
Wed Feb 6, 2013
There are more than 50% rental of the community. Does that mean selling it in the future will be very difficult?
0 votes
Tim, Home Buyer, Redmond, WA
Tue Feb 5, 2013
I am not sure that when the cap comes, I will be already renting it out or not, since currently I am the tenant living in the condo, but I am looking for moving out sometime this year.
Also is it a lot to take care of if u rent your property out?
0 votes
Tim,
If you think of your condo investment as if it were another investment that you use,such as your car, it will help you visualize what is ahead.
Keeping it up, maintaining it, and in good repair are the best ways to insure maximum value down the road. Taking care of a rental property can be very costly and time consuming depending on its needs and repairs. The flip side to this is your ability to write off expense as you would any business cost. There is always risks with any investment.
Discussing your plan with other rental owners, to get a handle on what's involved, would be my best recommendation.
Chuck
Flag Wed Feb 6, 2013
Chuck Sparks, Agent, Bellevue, WA
Tue Feb 5, 2013
A better question to ask the board is how many condos are currently rentals. Many HOA set caps in percentages. If you get in now and are renting when ,and if, they set a cap # you should already be grandfathered under the cap limit.
Like all investments there are risks. The good thing about your situation is you should be able to mitigate yours by selling in a few years for a likely profit.
Keeping the condo in good condition and finding good renters is the best way to leverage your investment.
Good Luck!
0 votes
Jirius Isaac, Agent, Kenmore, WA
Tue Feb 5, 2013
If you already rent the place out, they will probably not make yous stop renting it out when they have a rental cap. However, with condos there are so many other things to look at & be aware of that you really want to have a buyers agent make the offer & work on your behalf. If you want to discuss that or discuss getting approved for a loan with me, just get in touch with me directly & I would be happy to help you.

Good luck to you in any case,
Jirius Isaac
Isaac Real Estate Team
Champions Real Estate Services
TriStar Finance #MLO-107799
Office: 425-483-6849 Cell: 206-841-9976
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0 votes
Dan Tabit, Agent, Issaquah, WA
Tue Feb 5, 2013
Tim,
The future is anybodies guess. If you buy it and get on the board, you'll have a say whether the cap comes on or not. Rental caps seem like a good idea to some, but others get annoyed having to wait for their opportunity.
You might want to speak with some others who have been on the board and get a different perspective about the likelihood of the cap coming. It could be that some have wanted one for years, but they couldn't get the votes. Best of luck.
0 votes
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