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http://en.wikipedia.org/wiki/Condominium
Condominiums are typically apartment-style units stacked on top of and/or beside one another and sold to individual owners. When you purchase a codominim, you're actually purchasing the interior of a specific unit as well as a proportionate interest in the common areas-the pool, tennis courts, grounds, hallways, laundry room, and so on. Although you have full use and enjoyment of the common areas, remember that the homeowner's association actually. owns and maintains the common areas as well as the bilding structures themselves.
One advantage to a condo as an investment property is that of all the attached housing options, condos are generally the lowest-maintenace properties because most condominium associations deal with issues such as roofing,gardening, and so on for the entire building and receive the benefits of quanitity purchasing. You're still responsible for necessary maintenance inside your unit, such as servicing applicnaces, interior painting , and so on.
Curious as to what city you are in. Out here in LA, most condos are converted apartment buildings. Townhouses are generally much bigger and nicer. Regardless, they all have homeowner associations (HOAs) that maintain the common property and pay insurance for the association and cover some other expenses, like water. The homeowners are all charged a monthly fee to cover these expenses.
I've started to become interested in buying townhomes and placing tenants in them. They have some that are really nice, and huge, with attached 2 car garages, appliances and w/d that are going really cheap. Within the last six months, prices on some have gone from the $300s to $150K or less.
The thing about buying them for investment properties is that before you even start seriously thinking about it, you have to make sure that the HOA allows tenants into the homes. Many of them are strictly owner occupied only. Also, these props are notorious for being loaded down with liens, so be sure to check before making an offer. And finally, if the person selling is behind on his mortgage, chances are good he's behind in his HOA fees. HOA fees out here range from about $250 to over $500 per month on a medium-priced prop. If you buy the prop, you are obligated to pay off the HOA fees that are in arrears. If the guy hasn't paid for 6 months, that could be another $3,000 (more or less) that you need to figure into your purchase price.
Cindy
Life isn’t about waiting for the storm to pass…
It’s about learning to dance in the rain.
The most difficult thing is the decision to act, the rest is merely tenacity. The fears are paper tigers. You can do anything you decide to do. You can act to change and control your life; and the procedure, the process is its own reward. - Amelia Earhart
"The greatest mistake you can make in life is to continually be afraid you will make one." - Elbert Hubbard
Great information. Has anyone been trying to assign condos/townhomes? There are soooooo many of them that are dirt cheap where I am at. I am just curious if anyone else has had success from assigning them?
Richard
Bothell, WA
Know what truely matters in life, consume yourself with that, and you shall never be disappointed, afraid, or alone. Give your gratitude always, give respect to everyone, and you shall never be anything less than what matters the most. Give praise to the Lord, forgive yourself and others, and with all of this together you will get a taste of what heavens lie ahead.