One of the biggest benefits of condo ownership is that other people do the exterior property maintenance for you.
We all know that investing in rental properties can be a great way to earn income. But purchasing single-family homes to rent out can be expensive, especially for beginners. Condo units are usually cheaper. Does condo investment make a good entry point for an investor?
What Is a Condo?
A condo, or condominium, is a private residence within a larger building or community. It can be a multi-story townhouse or a single unit in a high-rise with other condo units above and below.
As an investment property, a condo can be rented out to tenants. This can make it seem very much like an apartment. The difference is ownership. Individuals own each condo. But apartments are rented out by someone who owns the entire building.
A property owner purchases a condo and pays a monthly condo fee (in addition to the purchase price of the condo itself). This fee covers the maintenance and upkeep of common areas shared with other owners in the condo community.
Should you Buy a Condo as an Investment Property?
It depends on some key things, as does any real estate investment.
Most important are the property’s location and the financials. No matter what, the condo’s location has to be a desirable one with a qualified pool of tenants.
In addition, the return on investment (ROI) of the specific property needs to be in synch with your investing goals. And if you’re worried about property mismanagement issues, you can use services like Buildium, which streamlines property management tasks.