financing condos and condominimum homes

Real estate investors like the appeal of an established condominium project, especially one located near a college campus or in a bustling business district. For both buying and leasing out as well as buying and selling, condos appeal to a specific segment of the market and provide investment opportunities for the flip as well as the hold. But what about one bedroom condos, are they a smart investment?

Any real estate agent will tell you that the marketability of a one bedroom condo is feint compared to a two or three bedroom unit. Yet at the same time, one bedroom condos are much less expensive to purchase as well as maintain. Here are a few benefits of a one bedroom unit.

If you’re a first time investor or don’t want to tie up much of your cash, the one bedroom condo will be cheaper. A real estate agent is correct, a one bedroom unit has less appeal, but they’re less expensive as well, meaning more money for you each month.

There’s always a demand for a studio or one bedroom condo, especially in areas where there is a demand such as near a university or community college campus. The renter is typically one individual which in turn means less wear and tear on flooring, appliances and living areas compared to two or three renters. And with regard to rent, condominium projects have fewer one bedroom condos compared to two or three bed units. This means higher rental rates for one bedroom units due to the demand.

Yet with any real estate investment, it’s really the numbers that matter the most. That’s the benefit of real estate investing, done correctly, a buying decision is the result of careful analysis and not speculation. If the one bedroom condo is priced right, in a popular area and cash flows, it’s ripe for a long term investment. So go ahead and run the financials, if it makes sense, it makes sense, regardless of how many rooms it has.