Just as with every other piece of real estate that you are investing in, you should consider location and all of the different aspects of due diligence. Condos are a great way to diversify the types of rentals in your portfolio. However, condominiums come with their own unique set of problems that owners can encounter if they don’t do their homework before buying.
Read on as we explore five red flags to look for when buying a condo for investment in TN.
Parking
When searching for a multi-family property to invest in, it’s important to pay attention to the property’s overall appearance and condition. Take note of the parking lot’s condition, as well as the visibility and condition of any signage. It’s also important to assess the quality of the landscaping, as this can have a significant impact on the property’s curb appeal.
Remember, when you invest in a multi-family property, you’re not just buying an individual unit. You’re also investing in the accommodations and amenities that come with the property, which should begin the moment you step out of your car. This includes guest parking, which should be readily available and well-maintained.
By taking the time to carefully assess the property’s overall appearance and condition, you can ensure that you’re making a sound investment decision. A well-maintained property with ample guest parking and attractive landscaping is more likely to attract tenants and generate a reliable income stream, making it an excellent investment opportunity for savvy real estate investors.
If you’re interested in investing in a multi-family property in Memphis, contact a professional property investor like Memphis Home Buyers to learn more about the available properties in the area and how you can begin building your real estate portfolio today.
Sound
You don’t want your future tenants complaining about the noise. So pay attention when you are walking through the condo during the showing; when adequately insulated, you shouldn’t be able to hear the sounds of those living on the other side of walls, floors, or ceilings. Check the thickness of doors and walls, and visit during weekends or diner time, so that you get a realistic sense of the noise levels when more residents are at home. The noise level should be minimal; otherwise, you have spotted a major red flag when buying a condo for investment in TN.
HOA Financials
When purchasing a condo for investment in TN, it’s important to carefully review the HOA financials to ensure that you’re making a sound investment decision. One potential red flag to watch out for is a lack of funds in the HOA‘s account.
A lack of funds could indicate that several residents are withholding payment, which may be a sign of issues with the building or management. It’s important to investigate the cause of the non-payment and assess whether it could lead to additional problems down the line, including maintenance issues and potential assessments on residents.
By carefully reviewing the HOA financials, you can ensure that the building is financially stable and that the board is managing funds responsibly. Look for signs of adequate reserves and a healthy budget, as well as any potential red flags that could impact your investment.
If you’re interested in purchasing a condo for investment in TN and want to ensure that you’re making a sound financial decision, consider working with a professional property investor like Memphis Home Buyers. Our team can help you review the HOA financials and assess potential red flags to ensure that you’re making the best investment decision for your needs and goals. With our expertise and guidance, you can make a smart investment and enjoy a reliable income stream for years to come.
Association Fee
High association fees that don’t correlate to the amenities offered are another red flag to look for when buying a condo for investment in TN. There shouldn’t be any problem in providing you with documents stating the annual dues you will owe, which you will need if you are financing the purchase.
Maintainance and History
investors must review the code compliance history for the building and how the board adheres to routine maintenance and responsiveness when repairs are required carefully. Any deferred regular maintenance can become more costly as time passes. Unseen, minor problems turn into damage and can grow into significant catastrophes. If a history of code violations exists or the board isn’t taking great care of maintaining the structure, these are serious red flags to look for when buying a condo for investment in TN.
If you are looking for a condo as an investment, the pros at Memphis Home Buyers can help spot all the red flags when buying a condo for investment in TN. The full-service team at Memphis Home Buyers is ready to help you build your investment portfolio today, from locating properties to closing, fixing, flipping, and even property maintenance. We know about available properties with our vast network of connections, so you don’t miss out on great deals. So let the professional investors at Memphis Home Buyers work with you to help you find the right condo, and don’t forget to ask about our current inventory of the best condos available in TN. Why not find out how we can work together to help you. Contact Memphis Home Buyers today at (901) 828-8419.