OT: Owning a condo/townhouse and then renting it out
DH and I have been talking about investment properties for awhile. He can do any work in a house/condo, etc so we feel comfortable in that we would be able to maintain the home. My biggest concern is renters and having to deal with people who dont pay rent or damage the property.
Well my mom is retiring in a year and half. She is moving to the city that my sister and I live in with our kids. 2 1/2 hours from our hometown and where my mom has literally lived all of her life (except for 6 months). She will be retiring at 60 with a decent monthly amount but she is also going to get an easy job for extra money and for something to do.
Cosst of living is A LOT more then she is used to, so she is stressing about being able to afford the bills. I know she can do it, but I understand everything combined (retirement, moving, new location, etc) is going to be really stressful on her.
Apartment prices are pretty crazy in our area. My friend pays MORE for her 2 bedroom townhouse then we pay for our 4 bedroom/2 full bath house. Granted we got our house at a deal and when the market was good for buyers.
There are a lot of condos for sale in our area. Cheap. Good neighborhoods. The interiors are just outdated. Not really a problem for us.
It would actually be cheaper for us to buy a condo and then rent it to my mom. She would be able to get more bang for her buck and we would have an investment property.
Now granted we wouldnt charge my mom what we would charge a normal tenant. So we would be taking a "hit" there. But I know we would have a long term tenant in my mom. She would pay the rent. No issues with her. It would be a nice little start to getting our feet wet in dealing with owning a rental property. Because in time we would like to own more and make it kind of a side thing.
I know it varies but in general what does the condo association fees pay for?
Does anyone live in a condo and have anything they really like or really hate about it?
What about renting to someone? Is there anything that I need to know?
We have a good year to work out everything, find the right place.
- zerostepdrama's blog
- Log in or register to post comments
Comments
I live in a condo and I love
I live in a condo and I love it! The HOA pays for any repairs to the exterior and owners are responsible for the interior. The HOA covers plowing (I live in the snow belt), landscaping etc. Our HOA is a little pricey ($200/month) but they are excellent, our grounds are pristine. I had a roof leak on Xmas day and they had someone out first thing the next day. I know other people in area condos and they pay between $70-200, but you can tell the difference in prices based on the look of the development.
We are allowed to rent our condos, but it has to be a 12 month lease.
I was reading online that
I was reading online that sometimes the condo fees cover water/garbage/sewer and gas??? I'm assuming most places are electric heating though.
In mine, I pay gas, electric,
In mine, I pay gas, electric, water and sewer. They pay the garbage.
I lived in a condo a few year
I lived in a condo a few year ago and LOVED it! Everything was taken care of. All I had to do was keep it clean. The only thing that sucked is that it was RIGHT BESIDE where I worked so if someone called out, they would come get me! LOL
As far as renting. I used to handle that as well. I work in real estate. I never saw any huge issues with people not paying or being disrespectful of the property. Of course I handled vacation rentals not full time.
My mom would be the perfect
My mom would be the perfect tenant. She has lived in the same place for 17 years. LOL.
HOA fees, I think they vary a
HOA fees, I think they vary a lot. My issue is someone has to manage that account. I am sure they do not manage it for nothing. I have heard hoar stories of HOA fees being mismanaged.
I always thought a duplex would be more profitable. Cons...you have to care for the outside and cost. Pros...No HOA fees. and the second apartment rent could off set the hit of renting to your mother.
I have heard you need to rent out at least 7% above the value of a property just to break even That was years ago. I would set it at least 10%.
My mother's brother is a builder. He has built duplexes over time for investments. They are great rentals for young couple and elderly people. The plus side for renters is...You are not sharing a wall on both sides of your apartment.
However, I am sure the market for duplexes is more limited than condos or townhouses.
Yes, it is really important
Yes, it is really important to check on the HOA set up. Ours has an outside management company that manage everything, so there is no one person in control. They have annual meetings where everyone decides if they are happy and what changes, if any, need to be made. For example, this year we put in benches around the circle because a lot of the older residents enjoy walking, but need to rest. I believe our HOA fee of $200 is around 1/4 into major repair fund, the rest is in standard upkeep and management.
We have a single family 3
We have a single family 3 bedroom home that we rent out and up until the last tenants (they have been there a little over a year) we had NOTHING but problems. Things would always start out good, then it would go to shit. Unpaid rent, damages, cops, you name it we've had to deal with it. At least we can write losses off on our taxes, but it doesn't make up for the pain in the ass.
Honestly, I wouldn't advise UNLESS you can pay cash for it and the rent can be strictly income. We have a mortgage so the rent we get covers mortgage and taxes and not much more. Once we get the house paid for (another 5 years or so) it will be a cash cow and the pains in the ass will be more tolerable.
I live in a townhouse and I
I live in a townhouse and I love it. My HOA fees cover my water, sewer and maintenance of the lawn, buildings, pier, security patrol, and beach area. Our trash is covered in our county taxes. My HOA fee is $98 a month.
Thanks everyone for your
Thanks everyone for your input.
My mom would be our renter for a good 15-20 years so thankfully we wouldn’t have to worry about any tenant issues. And then honestly by that time, DH and I would probably be ready to move into the condo and either sell or rent our house that we own now.