Does anyone L/O Townhomes?? - Posted by Rod

Real Estate Investing
1

Posted by Redline on June 03, 1999 at 13:10:19:

Outside repairs are nil … except for if the association decides to put a new roof on the entire complex or they decide to change the vinyl siding or something … you’ll be hit with your fair (fat) share of the assessment.

PLUS - check the rules and regs. Some limit rental units.

RL

2

Does anyone L/O Townhomes?? - Posted by Rod

Posted by Rod on June 03, 1999 at 09:55:02:

There are ton’s of townhomes for rent & sale in my area. can these be L/O option the same way as a SFH?

Thanks

3

YES! - Posted by Jim IL

Posted by Jim IL on June 03, 1999 at 10:09:49:

Rod,
Almost 75% of my recent L/O’s have been condos and Townhomes. (lots of people buy these, low down and want that “house” only a little while later)
The only factor you need to keep in mind is the “assesment” or “Association fees”.
This will reduce your monthly cash flow if your not careful.
But, there are advantages, such as outside maintenance, trash removal and even utilities are included sometimes. (We have two where the heat and water/sewer are included in the assoc. fee).
Anyway, marketing the TH and condos is a little more difficult, because almost all my buyers want a SF “House”, but thats okay.
Worst case scenario is that we simply rent the homes out, because my payments are always at least $200/month below market rent.

Good luck to you,
Jim IL

4

Condos for renting - Posted by Steve

Posted by Steve on June 03, 1999 at 11:15:27:

Jim what is your experience with renting out condos?
I was going to do my first RE deal by buying a condo
then renting it out. Seems like an easy way to go since the outside repairs are nil. What should I look out for?

Thanks

Steve

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Re: Condos for renting - Posted by Tim (Atlanta)

Posted by Tim (Atlanta) on June 07, 1999 at 07:55:44:

I have been buying and renting out townhouses here for over 2 years. I have had good return on all of my properties. You do have to take into consideration that these properties are hard to sell, but that makes finding a deal to buy much easier. You should make sure that the property cash-flows well. You can’t assume that you will make up a small cash flow with appreciation when you sell. These units (in my area) just do not appreciate. Also be careful when screening tenants.

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Re: Condos for renting - Posted by SCook85

Posted by SCook85 on June 03, 1999 at 19:24:43:

Watch out for condo fees. Especially if they appear to be low. Newer complexes tend to offer low condo fees in the beginning to get units sold. Then when everything is sold the fees seem to mysteriously go up. This can really put a damper on your cash flow. I’ve seen condo fees go from about $80 per month to $245 per month over the course of 2 years.

SCook85