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[00:00] condos suck as investment properties and let me tell you why because it may be an unpopular opinion but I think it might be pretty popular actually right I have a list right here and number one is high association fees now we're looking anywhere from like 200 to $400 a month for a condo association fee now in my
[00:21] view that's money that could be put towards your house each payment so instead of buying a condo you can buy a slightly more expensive house and that money instead of going to the association will actually go towards your dirity now yes that $300 will average out is
[00:43] going towards Grounds Maintenance pool maintenance and um maybe there's like a gate a guard maybe there's um some level of insurance covering your property for for that that price point I just I'm not a fan of that so I would rather just have a house or something with a smaller HOA fee that I feel like
[01:04] isn't cutting into my month number two hiways are much slower to appreciate now they will but they're typically the very last thing to appreciate first you have um I think in Tampa actually we have multif family appreciates pretty quick and almost kind of keeps up with the with the rents and
[01:20] even surpasses rents sometimes we have houses and then we have condos or I'm sorry town homes and then we have condos condos are the last thing to go up in price and we saw that play out even just last year and now they're also you know they're they're kind of slowing down like they've now there's
[01:39] just all right number three the H are restrictive so depending on which HOA you're in and there's a large majority of them that do not allow rentals or you have to own the property for 1 to 2 years before you're even eligible to start renting or or there's a list of how many are allowed to be rented at any
[01:59] given time time so maybe there's only allowed to be uh 20% of the units in the entire Association can be rented out maybe they're already capped out and you're on a waiting list that's that would be awful number four you're at risk of special assessments that could happen at
[02:15] any time now when you're buying the condo up front you're going to know um you would ask the HOA really the management company what are any upcoming special assessments and what are the last ones that have been done and you know this many years ago because you want to know what what has
[02:32] been done what is uh how often things are being done and then what is kind of projected to be done now depends of course as well how old is the um the entire structure of the uh of the of the building if it's newer there's going to be few but they'll be in the future if it's older and there's been a ton of
[02:49] stuff done you may be in the clear for a while but you just never know number five we have a butt ton of of Apartments being built around Tampa it's kind of unbelievable there's hundreds here there's hundreds there there's hundreds popping up all over the place and these are just like when I say
[03:08] hundreds I mean there's like you know communities popping up with hundreds within that one community so there's like all they're all over the place and you know eventually they're going to be condo off into uh into separate condos but they're no different than your condo there are Apartments being managed by
[03:24] one person as opposed to a condo being being rented off by an individual you know landlord but it's still the same thing it's still a small unit and a big building no front yard no backyard uh that type of thing so you do have to be careful about Market saturation when it comes to those you know that type of
[03:42] Target uh renter how many options they're going to have number six we have financing hurdles and this is a big one because unless you're a cash if you're a cash buyer you're going to have no problems buying in any condo uh that you want now if you're financing that's where things can get tricky and this is
[03:59] kind of the annoying part of condos really because not every Condo Association has been properly managed financially and so lenders are going to ask for a questionnaire and it really depends on what that Association um you know what their financials look like and if they're even lendable or financeable
[04:16] so uh you know and then two if your condo is less than a th $100,000 you may have trouble finding a lender who will lend you less than $100,000 um cuz I've seen some that had like that's their limit they won't lend anything less than $100,000 so keep that in
[04:32] mind number seven leasing restrictions and I kind of touched on this previously but actually this is a separate one because there are um some HOAs that have leasing approval um processes I've seen some of these take 30 days to approve separately after you've already approved your applicant and they're good to go
[04:54] they're the perfect tenant they still have to be processed by the HOA and approved by them now yes most of the time they'll do this in about 7 days but I've actually seen several that do 14 and one terrible HOA they did 30 so um but they also uh many of many HOAs in these condo associations will have pet
[05:12] uh restrictions so keep in mind Tampa is a very big pet City uh we like to have pretty pretty much as few restrictions on pets as possible because you never know like for one people are going to come in with their um you know their their Esa animal their their doctor's note on this is an emotional
[05:30] support dog uh emotional support wolf hybrid pitbull um but the ho the ho in these condos they they may have breed and size restrictions so nothing maybe you can't have more than one dog or one cat maybe that dog has to be 30 lbs or less or whatever and so that really restricts how you know what tenants are
[05:50] even able to live there in the first place number eight and this is coming from a tenant perspective and somebody who of course I lived in in a in a condo before less privacy and noise there's just so much noise sometimes in these condo associations you never know if your
[06:05] building uh has been soundproof between each each room each um each room each unit um there have been times where I've been woken up um and I was much younger uh when you know I thought sleep wasn't more important but now that I have two kids I know sleep is more important now anyway you got you get waken up in the
[06:22] middle of the night by you know that music and uh that's like the last thing you want to hear at 3:00 a.m. right um a drug deal going down too but uh noise issues and you just have less privacy you don't have a yard you don't have um you know everybody can kind of hear sometimes in between if if somebody if
[06:41] the TV is too loud or you have a surround sound in there and you have to you can't even use it because it's too loud and it's just kind of annoying from the tennis perspective number nine is depending on the HOA to get things done because if you have a ton of potholes in the road
[06:56] around the HOA they're the ones that have got to do it and they're not always in the financial ability or just as responsible and reliable to get stuff done that needs to be done so you know it's kind of a weak point I I get it but relying on the HOA to do what they got to do and
[07:12] this is actually what a lot of people are happy about they're like oh I want to get a rental in a condo because they're going to help keep an eye on my tenant no they're not going to do that I mean they'll they'll Nag on them when they don't follow the rules but they're not going to actually help you maintain
[07:24] your unit and keep an eye on them for you it's not it's I think there's a little bit of a discon right there and number 10 the final one market volatility ho condos are the very last property type to go up in value so we saw this play out just 18 months ago through that big that big boom we had
[07:44] houses go up and duplexes almost at the same time and then pretty quickly after that we had town homes and then we had condos and we saw condos kind of go up like over the course of like 3 months it seemed like and then that was it um but they were the very last thing to go up they didn't go up as much um typically
[08:02] as the houses did they were the last thing and they're now they've already kind of weakened out quite a bit so I'm not a huge fan of those and when you go to sell in 10 years you know it's just a hassle because as we talked about in some of the other points finding a buyer who can meet all these criteria I'm
[08:19] selling a few condos right now actually um a handful of them and they' they're all just it's just the buyer pool is just not quite there not like uh a single family or a duplex condos are going to be the last thing to go up and they're going to be the first thing to plummet and value when things start
[08:36] getting bad anyway that's it for this video I hope you found those 10 uh reasons why I hate condos valuable or insightful uh please drop a comment below if you think that I'm completely wrong don't know what I'm talking about uh still you can like And subscribe to show me how wrong
[08:52] I am and thanks for watching bye
