I have always been interested in real estate. I'm 25 and I am really considereing making my first move on an investment property. I think a condo would be a nice way to start.
I realize condos don't offer as much potential for profit as a house but they are for the most part cheaper and seem like a reliable stream of income if you can rent one out. I am interested in Orlando, Miami, and Las Vegas as potential areas.
I would prefer that people experienced in real estate answer this. Preferably someone experienced in condos. Thank You.
2007-01-15 08:03:37 · 3 answers · asked by acvader 2 in Business & Finance ➔ Renting & Real Estate
Condos are a good stepping stone, yes. If you're not going to live on the property, however, your loan will be more difficult because lenders prefer owner occupied properties over tenant occupied ones. Why not live in your first acquistion, perhaps a duplex? That way, you'll get the best of both worlds. And duplexes have great resale value.
Whatever you do, DO THE MATH CAREFULLY. Condos have monthly fees which must be considered, and property taxes and maintenance add up. Make sure there is a positive cash flow or, if you live there, that considering your gaining a residence, it works for that reason.
Good luck!
2007-01-15 08:17:58 · answer #1 · answered by hatchland 3 · 1⤊ 0⤋
Condo's are a great way to start. You are wrong about condo's not offering as much profit as a home. Condo's are much cheaper than homes regarding price vs rent possible. More likely to pay their own way. The problem is that condo fees and taxes have go up so much it has eliminated much of the benefit. There are still some condo's for sale that are good deals. Don't buy anything that won't almost pay for itself. It will be a while before prices begin to go up again.
2007-01-15 17:42:21 · answer #2 · answered by sm4125 3 · 1⤊ 0⤋
Depends on the location, but condos can be very lucrative. If you're looking at an area that has more families than students, try duplexes. Look at the vacancy rates of the area as well. Now if you're looking for good returns in real estate without the heavy risk, try using tax liens as your investment vehicle (average return 12-18% year).
2007-01-17 14:34:17 · answer #3 · answered by John Rosa 3 · 1⤊ 0⤋