One of the biggest questions we get at Hampton & Hampton is whether you should buy a condo or a home. That’s what we are going to talk about today, so you can start planning your investment strategy around what we have found to be the best sorts of properties.
Typically, our suggestion to investors is to purchase a single family home. In the sunny Orlando area, the best type of home you can buy is a four bedroom, two bathroom home that has a double car garage and no pool. The reason we say no pool is because tenants can damage the surface of pools, and that’s costly to replace and repair. We are able to manage that concern if you do have a house on the rental market that has a pool. We always have professional pool care available. However, we think the best home you can buy is the four bedroom, two bath with no pool. Square footage is also very important to renters. If you can get something that is around 2,000 square feet or larger, people will love it and you won’t have a hard time finding a tenant.
If you do want to buy a condo or a duplex or a townhome, you have to prepare yourself for Homeowner’s Associations and Condo Associations that can sometimes be crazy. There are a lot of rules and regulations that you and your property will need to comply with. You’ll have to pay association fees and there will be applications and paperwork to fill out when you decide to rent your unit out. Some associations won’t allow renters at all, and you want to know that before you buy. It’s important to have a professional property manager helping you, otherwise you can end up buying a condo that you have no chance of renting. There is even one condo association in particular that will not allow unrelated individuals to live together. Tenants are required to re-apply every year at the time of lease renewal. Some homeowner’s associations can be a little difficult and they just won’t let people through the gate. If you don’t have someone to guide you through this process, it can be a rough road.