What’s The Best Real Estate Investing Strategy For You Right Now?

By Linda Baumgarten

Whether you are a brand-new investor or have been buying real estate for decades, it’s important to stay flexible while focusing on your overall goals.

Why flexible? Because the market is constantly changing. When the market changes, new strategies/opportunities come to the forefront. Of course, if you have been in this game for a while, you know nothing is new. Old strategies are just being recycled with a new flair. Remember bell bottoms and paisley patterns from the 70s? They are back, baby!

So what is happening now? Affordability is the rallying cry. Gen Z and Millenials move into their own “pad,” as Airbnb, VRBO, and short-term rentals become increasingly popular, the housing supply is undoubtedly tighter. Prices are rising and sometimes out of reach.

It’s just supply and demand. As demand increases, supply decreases, and prices for rent and purchasing go up. This is good news for builders and re-developers, especially in urban areas where older stock can be renovated and reconstructed to meet the needs of young people who enjoy the amenities of downtown living.

However, it will take a few years for supply to meet demand. In the meantime, what does a buyer do?

This is where condos or other shared housing neighborhoods could be the right solution for both homebuyers and investors.

Hear me out.

Since owners don’t own the land, condos are much more affordable than single-family houses. Owners don’t have to worry about mowing the lawn or shoveling the snow, which means more time for working, playing, and traveling. At the same time, condo owners often enjoy amenities like gyms, pools, and tennis courts that are prohibitively expensive for a single-family house. And think about the maintenance!

How does this help us as real estate investors?

The beauty of condos is that condominiums are a piece of real estate. You can wholesale them, fix/sell them, and even hold them for short- or long-term rental income. It is totally up to you, your experience, your goals. Since you are not responsible for roofs/decks/windows and more, renovation costs, knowledge, and timelines are minimized. You can focus on the interior, giving your buyer/tenant that “big reveal” feel while staying within budget. It is easy to determine their after-repair value. Talk about your fastest way to cash!

Are there any downsides? Yes, of course. As they say, there is no “free lunch”. Before you buy, do your due diligence.  Due diligence about the unit and, even more importantly, the community.

The other beauty of condos is that most real estate investors skip over them. With knowledge of the due diligence process and how to investigate a community’s stability, they can experience the incredible profits and stability of this class. This means you can take advantage of it and become the “go-to” person whenever someone wants to sell their property.

Take a little effort to become proficient, and you will benefit for years.

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Linda Baumgarten is an investor, author, coach, and founder of the Connecticut Real Estate Investors Association. She discovered the joys of condo ownership quite by accident. She also found some pitfalls, which she shares with her audience and students to empower them to become successful entrepreneurs and real estate investors.