Posted by phil fernandez on March 28, 2000 at 08:12:40:
The problem I have with condos is the lack of control you have on the cash flow because of the monthly condo dues. If there are 100 units in the project, you have one vote. And the work that is included within the monthly dues, lawn care, outside maintenance and repair, are always charged by the contractors at a premium.
Then you have what’s called special assessments. When the roof goes and there is not enough money in the till often a special assessment is needed to raise the money. This puts another dent into the cashflow if you keep as rentals.
As far as resale, your market is more limited than it would be with selling a house. Not everyone wants a condo.
Others may have good things to say about them and have made money. And maybe they would be ok for yourself. I try to stay away from them.