COULD I OWNER FINANCE A CONDO?
So you found a killer deal on a condos? You keep working the numbers using Owner Finance but something keeps telling you,
“Don’t do it!” You’re instincts are correct. I’d stay away from condos as a means of real estate investing.
The value of a condo is only as good as the condo association …and I’ve never seen a condo association I’d place my financial future with.
The monthly condo fee can get out of control. When that happens, you’re income spread can be diminished easy enough.
Special Assessments can kill your ROI as well. Years of profit can go down the tubes with just one “Special Assessment.”
I once sold a condo to a person who informed me eight months later that the condo association has issued a $15, 000 Special Assessment to repair all the roofs.
Bad neighbors can kill your re-sale too! Condo offer up tight living quarters. Get a bad neighbor and you’ll wish you’d never heard the word condo.
There are so many ways to make money in real estate. Condos are not typically in the top ten.
If you’re thinking owner financing is the ticket, I’d agree. Owner financing condos? …not so much.
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