When investing in real estate, it’s important to carefully consider the location and conduct thorough due diligence. Including condominiums in your rental portfolio can help diversify your investments. Nonetheless, it’s crucial to conduct research beforehand, as owning a condo comes with its own unique set of challenges that may arise if proper precautions are not taken prior to purchasing.
Keep reading as we delve into five warning signs to be aware of when purchasing a condominium as an investment property in IL.
Parking
During your visit to the property, pay attention to its overall appearance and the condition of the parking lot. Are the signs clearly visible and the landscaping well-maintained? Remember, you’re not just investing in a single unit; the amenities and comforts should start the moment you exit your vehicle, and the same applies to any visitors you may have. As such, it’s essential to assess the availability of guest parking upon your arrival as you begin your search for any potential issues.
Sound
To avoid potential tenant complaints about noise, it’s crucial to pay close attention during your walk-through of the condo. When a unit is adequately insulated, you should not be able to hear any noise from neighboring units, whether it’s through walls, floors, or ceilings. Be sure to check the thickness of doors and walls, and consider visiting during peak hours, such as weekends or dinnertime, to get a realistic sense of the noise levels when more residents are likely to be at home. If you notice significant noise levels, it could be a major red flag when purchasing a condo for investment in IL.
HOA Financials
To identify potential red flags when purchasing a condo for investment in IL, it’s essential to review the HOA financials. This can provide valuable insights into the financial health of the condominium and its residents. For instance, if several residents are withholding payments, this may be a sign of a protest due to unresolved issues within the building. Moreover, a lack of funds could lead to further problems, as the board may not have adequate funds to maintain the property properly. As such, reviewing the HOA financials can help you make an informed decision before investing in a condo.
Association Fee
When purchasing a condo for investment in IL, it’s crucial to be aware of high association fees that do not correspond to the amenities provided. This can be a warning sign, and it’s essential to review documents stating the annual dues you will be responsible for paying, particularly if you plan to finance the purchase. Obtaining this information should not be difficult, and it can help you make an informed decision before investing in a condo.
Maintainance and History
When investing in a condo in IL, it’s crucial to carefully review the building’s code compliance history and the board’s track record for routine maintenance and repair responsiveness. Deferred regular maintenance can lead to increasingly costly repairs over time, as minor issues can quickly escalate into significant problems. If there is a history of code violations or the board is not properly maintaining the building, these are serious red flags to be aware of when purchasing a condo for investment.
If you’re seeking a condo investment opportunity in IL, the team at Cardinal Creek Properties can help you identify any red flags during the buying process. Our full-service team is equipped to support you every step of the way, from finding suitable properties to closing deals and even property maintenance. With our extensive network of connections, we can help you locate properties that meet your investment needs, ensuring that you never miss out on great deals. Let our experienced investors work with you to identify the right condo investment opportunities for your portfolio. Don’t hesitate to inquire about our current inventory of the best condos in IL. To learn more about our services and how we can work together, contact Cardinal Creek Properties at (314) 467-8137.