“Make Money with Condominiums and Townhouses”
I promised you a review of this release by author Gary W. Eldrid (John Wiley and Sons, 2003), here it is:
Eldred makes an excellent case for investing in Condos in today’s market (I suggest this as part of your retirement plan), and goes into detail on how to examine condo docs, leases, tenants etc. I found the book simple to understand but detailed enough to offer substance for his arguments. He makes some excellent points. Here some of my key “take-a-ways”:
- The demographics for condo buyers is getting better, faster. In other words there will be more and more people from the “Echo Boomers”, the “Baby Boomers”, single persons and “DINKS”
(Double Income No kids) for which condo purchased make more sense than single family homes.
- He spends a great deal of time comparing condo investing to the stock market and annuities and showing us how condos will do so much better because of (1) appreciation (2) Equity Build (3) Cash Flow (4) Tax Benefits and (5) Diversification.
- The sensitive subject of negative cash flow is reviewed and Elder assures us that this can be made to go away with higher down payments than 20% and will certainly go away with time.
- Elder is passionate about the lack of attention that Wall Street gives real estate investing. I could not agree with him more.
- He does NOT address the specifics of investing in resort communities. (Alas you still need me!)
- His statements about dependence on the HOA (Home Owner Association) for watching over your tenants is a bit of a stretch, but he makes a very good case for investing in Condos over single family homes if you do not want the hassles of major maintenance. He has very good advice about evaluating the condo and the HOA.
If you are considering investing in condos and are doing some retirement planning, I recommend an investment in the book. If is full of sound advice and practical suggestions and the $20.00 purchase price is a bargain. Make it a part of your retirement plan library.