If you want to get into property investment, a condo is a great way to get into it. Before you decide on a condo as an investment property, consider these things that you should look for.
Examine Your Cash Flow
You should always assess the expenses related to the condo compared to the rental income that you expect to receive with the property. This includes your taxes, mortgage, HOA fees, and regular upkeep costs. Do you find that these costs are about on average with the typical apartment in the surrounding area? If so, the unit may not be ideal for renting.
If this is your first property, you will most likely be taking care of everything yourself. That said, you should still consider the cost of using a management company as well. Factor it into your cash flow now so that you can be prepared for it later if you expand your investment property business and need help managing your properties.
Look For Building Amenities
When tenants compare condo rentals, they go beyond the floor layout, size, and the view. They also look at the amenities of the building, since the shared community offers many benefits you cannot get when compared to renting a home.
Some amenities you should look for are a swimming pool, public meeting room, playgrounds, tennis courts, building security, on-site laundry, and gated entrances. If another building in the area offers better amenities than the building your unit is in, you could find tenants looking elsewhere for the full experience of condo living.
Know The HOA Restrictions
Many condos have restrictions based on the building's homeowner's association. It is important that you are familiar with all the restrictions that they have, since it may prohibit a tenant from wanting to rent your building.
A common restriction that you will run into concerns pets, with buildings not allowing dogs or other large pets. You may also run into issues with restrictions on decorations, with tenants not being allowed to place holiday decorations on the doors or windows. If you find the restrictions problematic, it is best to walk away from the property.
Once you know the kind of property you want based on these 3 things, work with a real estate agent to help you find it. They will help you find a condo that will be a great fit for you as your first investment property.