There is a Canadian guru named Raymond Aaron who made a fortune in condo townhouses and recommends them over any other form of real estate. Reason: they are cheaper than a house but you get practically the same rent. Therefore it is easier to get positive cash flow or at least break even. Therefore you can buy a lot of them and cash in on the price increase over the next few years.
The main thing to watch out for is the condo management and the condo fees, some are inefficiently managed and charge large fees - those ones you want to stay away from. Other than that it’s the same as any other house.
Posted by David Krulac on January 21, 2003 at 16:56:45:
besides GL comments that the biggest negatives to condos are:
Don’t buy in condo where there are more that 25% or so renters. You want to be renting where there are fewew renters than owners. just like SFHs.
excessive fees, special assessements sometimes can be $1,000 or more, poor management, etc. can be factors beyond your control that will hurt your investment. Avoid condos with those kinds of problems.