Condo investing is becoming a hot choice for people looking for an additional source of income. On the other hand, not everybody succeeds in this venture; primarily, because many quickly jumped into the trend without proper planning and the right preparations. As a result, most of them lost a huge amount of money.
If you are considering buying a condo unit as an additional source of income, you need to ensure that your money will not go to waste. You need to make sure you are buying the right type of condo unit for your specific purpose and that you are making the right decisions.
To help you determine this, below are 7 vital questions to ask yourself before jumping into condo investing:
- Are there any complaints from current tenants and condo owners?
You’ll find this information in the meeting minutes of the condo association. You can ask for a copy of the minutes so you can review them and find out what current tenants, owners, and occupants are saying about their individual condo units and to the condo building in general.
Some of the important aspects you should look at are complaints on plumbing, electrical connection, security, parking spaces, yard and overall building maintenance. When reviewing the minutes, make sure to note both positive and negative feedback from the condo unit owners.
You can also opt to look at future projects that are in the planning stage and are being started. These will help you determine whether or not you are making the right decision in buying this condo unit.
- What are the delinquency rates with regard to monthly payments of the condo unit and the association dues?
This information will tell you whether or not the current condo owners are satisfied with their condo unit as well as feel content with living in the condo building. Continuous payments, specifically those that are made on time, tell you that the owners are happy and that the condo association is well funded to continuously provide utmost service to the condo unit owners.
- Do they have a repair fund? How much is it at the moment?
This fund is used to pay for emergency repairs and replacements of vital parts of the condo building including the roof, playing courts, yards, and others. You want to know these details as this will help prove to you that the condo association is well funded.
- What does the insurance cover?
This is a critical aspect of a condo purchase. You need to know everything that comes with the insurance you’ll be paying for before you actually pay for the condo unit. You can ask for a copy of the certificate of insurance – along with a summary of the association’s policy.
You will then need to ensure that the replacement costs are nearly the same as the actual rebuilding costs. Read the entire certificate of insurance along with the association’s policy as this will help you gain a better understanding of your responsibilities as a condo owner and the benefits and other services that you are entitled to as part of the purchase.
- Does the condo association allow renters?
Because you’re going to be venturing into this condo investing to obtain an additional income source, you are most likely going to be renting it out. Hence, you need to confirm whether or not they allow renters. Aside from this, you also need to check if the location of the condo building and the condo building itself is conducive to renters.
Discover more condo investing tips by contacting Jerry Pinkas Real Estate Experts.
Jerry Pinkas Real Estate Experts
604 N. 27th Ave
Myrtle Beach, SC 29577
Your condo investing partners!