If you’re thinking about starting or expanding your property portfolio in sunny Florida, you may be asking which is the better type of investment to purchase: condo or single family home?
The answer here is, it depends.
Just like with any other type of real estate investment opportunity, your ideal match will depend on several factors. These include the annual return that you can anticipate on the investment (also referred to as the capitalization – or “cap” – rate), as well as the location, the market, and the actual property itself.
When narrowing down your decision, there can be both pros and cons to each type of property. For instance, oftentimes single family homes will have better appreciation potential than condos. Also, you’ll need to weigh out the cost of the condo association fee in terms of what it actually covers, and how much less property maintenance you’ll need to contend with on your own.
Plus, depending on the condominium development, there may be various rules and restrictions as far as renting the unit out to others, and / or certain regulations on how you can and can’t use the property.
That being said, there can also be some plusses to investing in condos. For example, even though there is usually an association fee to pay, this means that you (or the tenant) won’t need to worry about mowing the lawn, and keeping up with other exterior issues, such as painting, roof repairs, and the like.
In any case, finding and managing tenants can be time consuming – and it may be something that you would rather not do. If this is the case, hiring an experienced property manager in the area can be beneficial. For more details on how working with a property management team can free up your time as a landlord, yet still allow you to benefit from your property investments give us a call today.