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The investor challenge:
You want a safe investment that yields high returns, and you've heard that real estate investing is a proven way to build wealth, but you don't want to take on all the responsibilities of a landlord.
What is a good strategy? Invest in condos and town homes.
Condos and Townhouses are excellent investment vehicles for several reasons:
- They attract better tenants. Condos and town homes attract low-maintenance tenants who prefer to live in home-owning communities under the strict rules of a homeowners' association (HOA).
- They are low hassle. The HOA takes care of exterior maintenance. Most owners put in less than 20 hours each year managing their property.
- They generally cost less per unit than comparable quality detached homes.
- In nearly all markets, they yield more cash flow than houses per invested dollar.
- You can begin investing with a single low cost unit. You do not have to commit the cash and management time required to invest in apartment complexes.
- They present less cash flow shock (i.e., new roof, new siding, new exterior paint, etc.).
When you are ready to cash in your equity, you can market your property to other investors and to people looking for their own personal residence.
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