Do You Recommend Investing In Condos Or Single Family Homes?
The answer is YES to both!
We focus on single-family homes in Minnesota for the following reasons:
Liquidity: personal residences are quick and easy to sell, if needed
Higher grade of tenant: more stable, less vagrant, higher quality
Equity gain over time: long-term appreciation is typically the greatest
Easiest to acquire financing for
Easiest to rent out
No association or management fees: increased cash flow
When investing regionally (in other states) - we focus on condominiums for the following reasons:
Liquidity: personal residences are quick and easy to sell, if needed
Lowest price points: easiest to acquire for beginners or multiple units for intermediate investors
Easiest to acquire financing for
Lowest down payment requirements: less cash out of pocket
Strong rental market for affordable prices: high occupancy rates
Onsite management & association: least personal time invested
If you are considering diversifying your real estate investment-portfolio, you may want to consider both of these options. It's a great way to balance cash flow with appreciation.
