The answer depends on how much risk you are willing to put into your investment and how much of a reward you are looking to get out of that investment. This article will go over a ton of the pros and cons for each as a rental property and then finish of by comparing the both of them to hopefully help you get all the information you need for your decision!
Condominium management is usually made up of a board of unit owners who oversees the daily operation of the complex, such as lawn maintenance, snow removal, and building updates. Below we will explain what we have personally seen as pros and cons for using a condo as a rental property.
Pros Cons
Amenities Condo Fees
Security Harder to Show The Property
In-House Maintenance Potentially Longer Wait Times
Equity Land Ownership
Well Maintained Community Rules
Parking Parking Fees
Lower Upfront Cost Higher Monthly Cost
Able to Make In-Unit Improvements Can't Alter Shared Space
Owners of single-family homes purchase the home structure and the land it sits on, while condo owners own just the unit they live in, not the larger building or the land on which it's built. Pictured above is a row-style single family home but a conventional stand-alone house can also be considered a single-family home.
Pros Cons
Fully Owned Fully Responsible
More Space More Maintenance
Worth More Costs More
Can alter the building/lot Liable for building/lot
No Additional Monthly Fees No amenities
Less Rules and Regulations Lower chance of Enforcing Complaints
Less Security Easier to Show the Property
Choosing between a condo and a house should be based of what works best for you at the time. As yourself questions such as: Will I live there before I rent it out? Will I want to sell it one day? How much am I willing to put down to buy a property? How much liability do I want to take on?
From our standpoint a house is definitely a more profitable investment in the long-run because if you are able to pay off the mortgage you won't have to worry about monthly fees aside from utilities, meanwhile, for a condo you will always have some type of monthly fee that is subject to increase every year. However, if you care more about limiting the amount of responsibility and liability you undertake a condo offers more security since you only have to worry about the maintenance inside the unit. If you have more questions or are looking to start or continue your investment journey, don't hesitate to reach out to us to see what the best fit is for you!
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