Invest in CONDO versus SFH - Posted by CA

Posted by David Krulac on November 11, 2004 at 11:11:40:

this is my opinion and my opinion only. I think all other things being equal, both tenants and buyers would prefer a SFH versus a condo.

There are a number of reasons including:

  1. condos come with a bunch of restrictions, some prohibit using as rental.

  2. condo monthly fees can be costly.

  3. condo management can be amateurish, unprofessional, can mismanage the funds, not always being as efficient as possible. Also the association can pick any contractor evena friend even if they are not the low bidder. Sometimes condo assoc, get taken over and lose money, over pay for work, pick the wrong contractor, and make bad decisions. All of this with no input from you. They spend your money and don’t ask you how, and if they over spend, they’ll give you a special assessment to make up the difference.

  4. if more than 25% are rentals, it could be difficult to sell or refinace by you.

Invest in CONDO versus SFH - Posted by CA

Posted by CA on November 11, 2004 at 10:57:10:

I am in CA and interested to know since many people I know own condos, to start investing in condo first versus small SFH. Most condo comes with 2/2 but how is it different from 2/2 SFH in term of limited investment fund and holding costs. Can any experienced investors recommend on this? Thanks - James

Re: Invest in CONDO versus SFH - Posted by SteveA

Posted by SteveA on November 11, 2004 at 13:22:13:

Depends on your area. I live near the beach where condo’s don’t last 2 weeks on the market because Snowbirds are buying them up.