What About Condos?
I am just getting into wholesaling and probably asking a dumb question- But, what about condos? Wholesaling seems to be about single family homes. Can you also flip a condo? Is there too many problems involved?
Thanks in advance!
Ana
Condos are a tricky avenue unless you are experienced. I deal strictly with them on the coast but I am scared to deal with them in urban areas. The disadvantage to them are is the homeowners dues each month. This can be an advantage for someone who doesn't have much money such as prepaying a years insurance for a mortgage becuase typically the association has it included in your dues. Condos can be great deals for you but watch your market very closely in urban areas. Most buyers want a yard for children. Coastal condos are perfect because they are lower in cost and make better sense from an investor's view. There is quick resale on them for high profits and great income to offset the expense of them. The fall & winter make it a little difficult but with the right management company you can do very well. I hope this helps...Lance :-D
Thanks 8884260013! There are soo many condos in my area (downtown). I didn't want to pass up an opportunity or make a big mistake.
I have a good friend who does very well flipping condos. Fear not, all the rules for flipping stay in place. Due diligence for a condo is a little different than a single family house and includes at least some analysis of the condo assn. and its financial stablilty.
Back in antiquity when condos were new (not really, this story is only about 20 years ago) I bought a condo on Sheridan Road where the condo association board had just passed a special assessment of $300 per month for 36 months. Prices of the condos dropped $30,00 in a matter of weeks. I thought about this a little. $30,000 is the amount of mortagage you can get for a payment of $300 per month for 30 years. So I bought a unit on land contract, lived in it for the next 33 months, paying off the special assessment. Sure enough, prices jumped back up the $30,000 they had previously fallen. I sold the unit, did a simulaneous close and moved out to a little house I proceeded to renovate since I had $30,000 to put down.