I looked through Sacramento condos to see if any matched those prices and was surprised to find fewer than the number I can count on one hand priced under $30,000. But once I bumped the price from $31,000 to $50,000, more than 5 dozen popped up. Good luck trying to buy one, though. Lots of agents, especially in California, don't like to work in that price range because the net commission is too low for the effort expended.
Moreover, if you're thinking you can pick up a cheap condo and rent it out, you better check with the homeowner association to find out if rentals are allowed in the complex or if the HOA determines the rental percentage allowed. Check the financial health of the HOA. Some distressed condo complexes are saturated with foreclosures and short sales, and can't collect enough money in dues to cover obligations.
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Technorati tag: cheap condos
At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.
Comments
Nice post Elizabeth!!! Thank you for sharing this. I think if we want to buy a condo we must inquire the neighbors besides that unit that we are interested in. See if people are generally happy with the property and the management. Also we must use a reputable, licensed broker. Talk to your broker before going to view properties and make sure they understand your requirements and they have no false marketing.
My husband & I have been looking in Trulia & Realtors dot com for condos in TN. We established a business relationship with a RE agent in TN a few years ago (when prices were sky-high) & still keep in touch with her. However, we didn’t think about the lack of HOA fees from foreclosed condos so we will look into it BEFORE buying a unit. Thank you for a great article! Very, very helpful indeed!
Hi, Elizabeth
I am in Miami, Florida and as a realtor I must say that I am very frustrated with the rental market right now.
We have so many homes,condos vacant and we do not
have properties to rent. It is becoming a nightmare for
people who lost their homes and now have to rent. The rents are going up and we have multiple offers in many situations. The owners are taking advantage of the situation and rent are increasing . The lenders/banks or asset manager should be able to rent some of these properties at least for a term of 1 year . This will be the only solution to this new rental market. Do you have any ideas that we can share or who can we write to and see if there is anything that can be done.
Thank You
As always great advice, Elizabeth! so sad that the RE market had to get to this point…