Well, as investors are looking out for multi-family homes to be a great choice of investment there are some people who say that condos serve to be a great option of making an investment as well. But before you get there and make the best investment condo you will have to look into some considerations as well.
But what are these considerations?
The requirements that are essential for lending
well, this will be based on the area and the history of the real estate, you might even experience great restrictions when it comes to these lending requirements. Well, most of the lenders ask for 25% or more as a down payment for a condominium. Also, some lenders will ask you to live in the condo for a period of up to a year before you could rent it out. Also, make sure you are well aware of all the terms before you sign any agreement.
The approval rates overall
it is essentially very important that you differentiate between the various differences between a condo and a co-op unit. It is easier to get an approval with a condo as the terms are more lenient and they basically have a check on the history of your finances. This clearly implies that you would get approval more easily when it comes to a condo as compared to a co-op investment.
Also, if you are considering to make an investment and want to go ahead and purchase a condo then you need to make sure that all the rules and laws are being followed by you regarding the management of the property. It is important that you do your homework well so that you have no regrets later once you have made your purchase.