Are Condos Good Investments? The SURPRISING Truth

[@Joelegolvan]

I own two condos in an expensive area. I self manage them because the Hoa does most of it. So even though there is Hoa Fees it saves me from having a property management company.

[@OneHourProfessor]

Yep, same with mine. Hence why i think it's the best investment. Very easy to deal with.

[@RichieD_21]

Hoas are not suppose to be dealing with your tenants. They deal with the owners directly

[@RickyDominguez]

@@RichieD_21 I don't think the are referring to the tenants, per se. They are talking about management of the building, gardening, and many of the utilities. That is a huge LOAD off compared to a stand alone home where YOU must take care of walls, roof, windows, gardening, etc.

[@mjwmontgomery]

Only if you flip them after a few years. They are easy to resell.

[@Wisdomseeker1028]

Would have been nice if you shared the exact numbers.... rent per month? Taxes... insurance.. any other fixed expense. You did share the price of the condo and the monthly HOA so that was helpful

[@tommyjones1357]

Dude! Pretty sure I went to a party in that building some years back. The girl who invited us was one of the workers for the building. If I recall correctly, the top floor was still unfinished and gave a great view of the lake.

[@OneHourProfessor]

Not even sure to be honest, I never went to the top floor. Great building though!

[@JoeDWhiteTalks]

A condo as an investment is an iffy situation. Some condo associations only allow a certain amount of rentals in the area. This is because VA and FHA has that requirement to issue out VA or FHA loans. You just need to do a bit of homework first.

[@OneHourProfessor]

Agreed. Also, some will not allow Airbnb. Just have to be careful.

[@JoeDWhiteTalks]

@@OneHourProfessor I personally tried using a VA loan on a beautiful condo close by and I found out that the community lost their VA approvals due to high rentals.

[@Username6556username]

@@OneHourProfessor Hi. Why do VA & FHA loans look at owner occupancy rate ? As in how does it affect them whether owner occupancy rate is 10% or 90% ?

[@RichieD_21]

@@Username6556username because renters do take take care of properties like owners do and high percentage of renters poses a risk of the property falling into disrepair

[@yapster1981]

With people leaving the cities and into the suburbs, I’m thinking of getting my first rental if more condo listings are still added this summer and seeing bargain prices. We shall see...

[@OneHourProfessor]

I'd advise you do it so long as it's a good building/association!

[@stanmoney8470]

Homes appreciate, they don't depreciate unless it's not being taken care of. Even the raggedy is homes appreciate over at least a 10-year time span.

[@jadexplores2100]

Thought about moving back to Chicago and buying a condo there as well but those condo fees in the loop are sooooo HIGH. For example, a $400 monthly condo fee in say the South Loop, I would expect to be double in another 25 years by the time I paid it off so I feel like I'd be trading off payoff of the mortgage with a huge condo fee. Living in the loop in Chi though is definitely where it's at; rental prices at the moment are so low due to COVID so hard to justify condo mortgage+monthly fees. Just curious if you know if your $275k condo is worth the $300kish quote at this time or if COVID has impacted pricing in your area?

[@OneHourProfessor]

Yea, association fees are around $400/bedroom a month generally in the loop area. Add in the ridiculous taxes, and it’s probably around $800-$900 a month total. In terms of current value, I talked to a realtor recently and they said value has maintained or gone a bit higher. Due to Covid, sellers aren’t around. So supply is limited. I just renewed with a new tenant, but if I didn’t, she said I would have been able to sell for market value or slightly more.

[@jadexplores2100]

@@OneHourProfessor Interesting. Thanks for your response!

[@victorresp]

Great information, thanks so much.

[@OneHourProfessor]

Glad it was helpful!

[@Iceman-xe7jo]

Me and my wife are looking to get one in a small country town. No renters/vacation rentals allowed. They recently stopped that due to problems with some renters. It seems like they move quickly in this area where we are looking.

[@OneHourProfessor]

I think it's a good idea so long as you guys don't need it for the rental income. Still have mine, still love it!

[@mcarlkv53]

condo buying is tough. I would love to buy a condo in orlando, kissimmee, or melbourne...but with the hoa or condo association fee and the taxes, and the homeowner insurance, and sometimes a "special assessment fee"....its just tough...any condos in orlando without any fees or homeowner insurance or taxes required?

[@OneHourProfessor]

Those do definitely add up. I think the biggest thing is that there is less risk, so also less money to be made.

[@adrianng274]

You got me on liking and subscribing.. lol

[@OneHourProfessor]

Boom!

[@juanthedominican8824]

Wait if you buy a hight rise condo with water view is cheaper to rent ???????????????????????

[@gabeISN69]

Hahah the young professionals dancing 💃

[@johnvill1981]

Will you buy a condo in Cebu Philippines?

[@gofdoom10]

Looking to move to Chicago in the next year. Is it possible to find cash flowing condos in the city?

[@OneHourProfessor]

They are a little high priced for my liking at the moment, but I'm sure you could find a deal. There are a lot of up and coming areas to invest in. If you can wait it out, they'll be cash flow and a good investment in the long term in my opinion.

[@stanmoney8470]

Ive no, because of the monthly HOA fees

[@richyvan1511]

hi what do tou think of buying a brand new condo still not finished until 2022 or this year lets say in canada montreal downtown old port

[@OneHourProfessor]

I don't know the area, but I don't usually like buying any home new. Usually has a longer time to get a return unless the area really gets sought-after quickly.

[@waynesoxy21]

Looking at a South Loop 1br condo for $225k with a monthly HOA at $227. Curious your thoughts on the area and rental market for that option?

[@OneHourProfessor]

Decent HOA for a 1BR. Mine was over $400 for a 1BR, but had a lot of amenities. Honestly I have no idea on rental market, but your realtor can give you all of that data from the MLS. I actually just sold this condo and cleared about 70k in profit after renting it out for multiple years. Not a bad haul.

[@awsamer01]

HOA killer!!

[@marionharris5952]

?

[@brigettejohnson4019]

Do you still own the Condo🤔

[@keeperzero]

I own 4 taco stands

[@hyunkyulee5546]

I feel like they are not really good investment choices compared to single family homes because of the increase in HOAs every year... Once you hit the $1000/month mark for HOAs nobody in the market will want to touch that property

[@hyunkyulee5546]

@onehourprofessor any thoughts?

[@OneHourProfessor]

Fair, but if you have a well-managed association it may take 50 years to get there. For instance, I've owned mine for 8 years and the association has only increased $40/month in that time.

[@Username6556username]

@@OneHourProfessor Hi. How to figure out whether the HOA association is competent enough or not before buying the condo ?

[@mulliganstew72]

@@Username6556username Ask to read the meeting minutes from past years. They should include financials, board decisions, What’s been done and what needs to get done. etc.Another thing is that there is a board for the HOA & this changes so what’s managed good for a couple of years might change. In my experience we’ve also gone through different property management companies as well as different board members. I’m constantly asking myself where my ever increasing HOA fees go (we also get dinged with special assessments for major projects like upgrading the whole roof or the plumbing in the building… and sometimes assessments to add to “budget reserves”). I don’t get too involved with the meetings because it’s just catty & unprofessional. That said, I’ve made a decent amount of equity over the past 15+ years and have a place to live it’s a boot so like he is saying there are give-and-takes. I’m moving and I’m going to sell versus rent it out. I wanna off myself of the responsibility & See what’s next…The situation with the building collapse in Florida shed some light on owning a condo.

[@Insomniac_tv]

short answer is no

[@marionharris5952]

Why

[@OneHourProfessor]

Depends on risk tolerance.

[@doubleoseven273]

No one could pay me enough to move to chicago 🤣

[@OneHourProfessor]

Couldn't agree more, recently moved to NV.

[@PrincePalmUwU]

RIP headphone users that was loud

[@OneHourProfessor]

☠

[@oscargarcia8573]

Your cute 🥰