Investing in a condo offers many advantages to real estate investors. Demand for this type of investment property is expected to increase in the coming years and their low maintenance requirements make them the ideal option for beginners. So what are some effective and simple ways to find condos for sale? How to know if a condo is a good investment? And is buying a condo to rent out a good strategy? Keep reading as we demystify every aspect of condo investment property and outline the steps of profitable condominium investing.
The Benefits of Making a Condo Real Estate Investment
Before showing you how to find condos for sale, we need to answer the following questions: Are condos good investments? As you can probably guess, we are strong believers in condo rental property investing. These properties boast several qualities that make them suitable investments for a wide array of real estate investors. Let’s check out some of the benefits of buying a condo as an investment property:
- They are affordable relative to the rental income that they can generate.
- You won’t need to make a large deposit to purchase a new development condo.
- Financing for condo investments has become highly accessible.
- Condos are the preferred rental option for the younger generations.
- They offer many tax and equity advantages compared to single-family homes.
- The laws that regulate condo rental properties tend to favor landlords.
At this point, you are probably asking yourself «How do I find condos for sale near me?» The next section will answer this question and detail the process of finding and buying a condo for investment.
Finding Condos for Sale: 3 Easy Ways
Much like anything in real estate investing, finding condos for sale can be done in various ways. But in this guide, we will only focus on the simple methods that every beginner rental property investor can implement. Here are some of the options that are available to you when you are looking for condo real estate investments:
1- Work with a real estate agent or broker
The easiest way to find condos for sale is to work closely with a real estate professional. Real estate agents and brokers have established networks in the housing market and are ideally positioned to provide their clients with what they need. This is especially the case for novice condo investors as they are more likely to stumble into pitfalls when investing in real estate.
Here is what working with a professional can offer you:
- Detailed breakdowns of each neighborhood in your local real estate market
- Assistance in implementing a coherent and realistic rental strategy
- Guidance when it comes to exploring your investment property financing options
- Simple resolutions to any issues faced during the purchasing process
- Suggestions on the property management company that you should work with
Before retaining the services of a real estate agent, make sure to go over the commission structure in order to avoid overpaying for their services.
Related: What Is a Real Estate Broker and Does a Real Estate Investor Need One?
2- Use online real estate investing tools
Online tools have become an integral part of real estate investing. In fact, most savvy investors incorporate them in every step of the process, from property search to ROI calculations. A great option that is worth considering is Mashvisor’s tools. First, use the real estate heatmap. This convenient feature employs simple visual cues that enable the investor to locate the best neighborhoods with condos for sale on a map. The tool uses property data and predictive analytics to unearth the locations with top-performing investments.
Then you can use the property finder to zero-in on the best condos for sale in any market. Simply set the Condo Filter and any other filters that match your criteria. Thanks to this tool’s advanced AI technology, you will get highly accurate results in a timely manner. Additionally, the property finder grants you access to each listing’s condo investment property calculator, a tool that allows you to carry out a thorough investment property analysis.
3- Consider checking off-market listings
Off-market properties are real estate sales that take place outside of the MLS. Looking for off-market condos for sale can be a great way to land undervalued real estate investments. There are several ways to access off-market listings, here are some of the most effective ones:
- Use direct mail marketing to reach potential condo sellers
- Explore your real estate network
- Sift through public records to find recent foreclosures and short sale properties
- Use the Mashvisor Property Marketplace to find and analyze the investment potential of hundreds of off-market properties
If you’re just a beginner, the best option from that list is the Mashvisor Property Marketplace. That’s because it really eliminates all the work in finding off-market real estate deals. Check it out.
Related: 6 Reasons You Should Look for Off Market Real Estate Deals
Now that you understand the process of how to find a condo, let’s delve into some of the moving parts you need to be aware of when buying a condo as a rental property.
What You Need to Keep in Mind When Buying a Condo to Rent Out
Buying a condo to rent out involves dealing with a unique set of rules and regulations. Chiefly among them is the condo association rules. While the nature of these rules varies from one association to another, here is what you should look into when you are planning to rent out a condo:
- Fees: The fee structure is one of the main factors that you need to take into consideration. Some associations fees merely cover basic necessities whereas others extend to a wider range of amenities.
- Rental regulations: State and local laws are not the only things that regulate condo rentals. In fact, the condo association can impose several restrictions. For example, your association might ban short-term rentals in the building even though they’re legal in the city.
- Pet policy: The condo association imposes building-wide pet policies. In some cases, the policy might differ for owner vs tenant.
Related: Renting Out a Condo: A Guide for Real Estate Investors
Finding Condos for Sale: The Bottom Line
Whether you are planning on buying a vacation condo or investing in one as a long-term rental property, this simple guide should be enough to help you get started.
To check out some more real estate investing guidelines, head over to our blog.