Is it a good time to buy an investment condo? (to rent, condos)

[Baike]

I have some spare money at hand, and would like to buy a small condo to rent out. Is it a good time to buy a small condo in NoVA? Given the interest rate may keep going up.

Not really looking for positive cash flow, as long as it can break even mortgage/tax, etc, I will be happy.

[LuvVA]

Remember you have condo fee which ranges from $400 onward....

[Baike]

Originally Posted by LuvVA

Remember you have condo fee which ranges from $400 onward....

Yes, it will be part of cost.

Condo does not require much maintenance. If I have time, I would consider townhouse.

[boyd888]

Put it in the stock market or an REIT if you want real investment exposure.

No one knows if "now" is a good time, ask anyone who bought their first condo in 2006 how it worked out for them.

[spencgr]

Originally Posted by GlebeH

Not really looking for positive cash flow, as long as it can break even mortgage/tax, etc, I will be happy.

Why in the world would you look to invest in something where you are just "breaking even"? Might as well stash that money under a mattress.

[Baike]

Originally Posted by spencgr

Why in the world would you look to invest in something where you are just "breaking even"? Might as well stash that money under a mattress.

At least 30 yrs later, you have an extra house.

[Ashley Tauzier]

It depends on if you want to have investment properties or not. Interest rates are still low and prices are somewhat stable. So if you want to build a portfolio of investment properties, I say go for it. If you have nothing invested in mutual funds or retirement, then I would start there first. Where are you considering purchasing said condo?

[spencgr]

Originally Posted by GlebeH

At least 30 yrs later, you have an extra house.

Not sure I follow....when I retire, I will need cash not an extra house. So, if I was investing, I'd look for something that has a better rate of return, to allow for more cash. I would never look to "break even" with my cash.

If you can pay for the condo directly; and you break even- then there is no difference than putting the money under the mattress.

If you are mortgaging the condo, and you just "break even" every month; you are actually losing money long term.

[bmwguydc]

Condo fees also increase with assessments, hence, I would look to a townhouse. You can always hire maintenance workers when the time comes, as well as hire a landscape company and include the cost in the rent to maintain the property, which would be a minimal cost in a townhouse. However, if you're investing for the sake of potential return, there are many pitfalls, and you need to look in areas with historically stable prices. Condos make sense in urban environments, IMO, not in suburbs because when the condo fees are factored, you could likely have a townhouse for the same money. And, if you're not contracting with a property management company, you're essentially taking on a part-time job as a landlord, the number of hours dependent upon the number of properties in your portfolio and the condition, not to mention avoiding "needy" tenants who think a burned out light bulb is an emergency.

[ChristineVA]

The only place I'd buy and "investment" condo or townhouse is in an area close in to a big workcenter (i.e., just outside of DC). After that, it's not really much of an investment.