Condos Are Great Starters

Condos are great property investments if you are starting out as a real estate investor. They are easier to maintain from the owner’s part and are often easier to rent out.

When searching for a condo, become familiar with the prices and be sure to ask for information such as strata minutes, contingency fund, maintenance fees, and any possible liens or assessments that may be held against the property. Part of your due diligence may also include calling the building caretaker or property manager and asking him/her about any potential issues. They may be willing to provide unbiased information, giving you a better understanding of the building’s history and condition.

Three years ago, I came across a 2-BR condo that was offered below appraised market value because the seller had declared bankruptcy. I noticed that the maintenance fee was unusually high despite having very few amenities. I contacted the caretaker and asked if he understood the reasons why. He explained that a previous property management company had claimed some routine maintenance costs through the insurance company. This affected the insurance premiums and strata fees. Despite this knowledge, my wife and I decided to purchase the property for ourselves after negotiating a good price. Our exit strategy involved selling it within 2 years after making some cosmetic improvements. We managed to sell the property in 11 months with over 50% net ROI. Contact me to learn how I did it.