Business and Marketing

Making money is the easiest Condo Rentals in areas with high rents and a big difference in house prices over the apartment.
What are the benefits of investing in houses compared Condo Rentals? Simplified maintenance, and more cash flow in some areas. The catch? Some condominium complexes will not allow you to rent housing. The solution? Find one that allows it.
In many areas, rental prices for apartments and houses of the same size are more or less the same thing. Sometimes a two-bedroom home can be just a little more than a building. On the other hand, in the apartment swimming pool complex, a rental can be the same or even higher.
The most important point is that while rental rates are similar, the purchase prices are often very different. When we lived in Tucson, Arizona, for example (2005), you can buy a decent condominium units with two bedrooms for as little as $ 74,000. To go below $ 160 000 for a two bedroom, one had to start looking at fixer-upper, or the bad parts of town.
The houses cost more than twice, but what are they rented? The rent was a little more for a house. A little more for rent and you pay more than twice as much? There was no way to cash flow from rental houses in Tucson in 2005. It was certainly possible to break even on a rental condo.
Each region is different in the relationship between the prices of condominiums on the houses. Some places condominiums costing as much or more houses. But in most places, unless they are on a golf course or lake, they are smaller than the houses of similar size.
Verified at this time (January 2007), for example, I see that there are several two-bedroom condominiums for sale in Austin, Texas, for less than $ 50,000. I'm not sure what rental rates are there, but you do not need a lot of income for the positive cash flow at this price. And no two bedroom houses for sale at low prices at the moment.
If you invest in rental housing, be sure to purchase the complex, you can rent a unit. Some allow only owner-occupied housing units. Others may limit the number of units that can be used for hire. This is because the banks stopped lending the apartment buildings where more than a certain percentage of the complex are rentals. This may make it difficult to sell, so be happy that they enforce these rules.
Remember also to consider the condominium association fees (sometimes called the HOA fees, homeowners association or units), the share of costs. In relation to the purchase price and rents, the cost may seem a bit 'higher than the houses. On the other hand, because of all the exterior maintenance is usually included in the monthly fee is less unpleasant surprises with condominiums homes.
Follow the usual procedure in analyzing purchase a condo for rent. Start with the projected income, subtract all expenses, to arrive at net income before debt service. When you can borrow what you need to reduce payments on this amount (leaving a little money) condo rental can be an excellent investment.
Another thing. Such a price differential between condos and house prices, not necessarily continue. If interest rates rise and housing prices rise too quickly, more and more start to notice that the condominiums are cheap in comparison. The demand thus created can lead to increase in condo prices, although house prices to rise.