A lot of people enjoy living in a condo because this is a way for them to reduce their maintenance while also purchasing an affordable property. The same qualities make a condo an attractive investment property. Because a lot of people want to live close to downtown, it is possible for a condo owner to generate a consistent stream of passive income. At the same time, there are several red flags people need to watch for when buying an investment condo.
Too Noisy
One of the first factors people need to watch for is the noise level. Nobody wants to live in a location with thin walls. It might be difficult to tell the thickness of the walls when looking at the property for the first time, but it might be helpful to talk to some of the neighbors to see what the noise level is like. Pay close attention to the units above and below that specific unit as well.
Bad Parking
Parking is frequently overlooked because it is not right outside the front door, but it is important when trying to attract potential renters. Take a close look at the condition of the parking lot. Is it underground? Is it behind the gate? Does the lot look like it has been well taken care of? How many spots come with the unit? These will all play a role in the potential value of the property.
Bad HOA Financials
HOA fees are often higher and condos than they are in single-family homes, so it is important for potential investors to budget accordingly. At the same time, it is crucial to take a close look at the association’s books. Nobody wants to be hit with a special assessment. For example, if there is a problem with the roof, the owners might have to divide the cost among themselves. This could cost thousands of dollars per owner.
Find The Right Condo
These are a few of the biggest red flags to look for when trying to find an investment condo. Even though condos can be a great investment, property investors need to take their time to find the right condo to meet their needs. Remain vigilant for these red flags.
