Condos, Apartments & Single-Family Homes

When choosing between a condominium, an apartment, or a single-family home, understanding the pros, cons, and financial implications of each is key. From homeowners associations to rental income projections and vacation property investing, this section answers common questions for today’s buyers and investors.

Are Condominiums Risky to Buy?

Not necessarily. While condos didn’t experience the explosive appreciation of single-family homes during the 1980s, most have held or gained value—especially in urban markets with limited inventory and high demand from single buyers.
Before buying, always:

• Review the past six months of homeowners association (HOA) minutes
• Research the neighborhood and development
• Watch for red flags like lawsuits, deferred maintenance, or poorly managed boards

Condo associations have improved over the years and are generally more sophisticated in managing disputes and maintenance.

Are Condos a Good Investment?

Yes, particularly in high-cost markets or urban centers. Condos have gained in value and popularity due to demographic shifts (more single buyers and empty nesters) and improved HOA governance. While disputes and construction defects have caused issues in the past, many boards now avoid litigation and manage budgets more responsibly—making condos more attractive to buyers and investors alike.

Are One-Bedroom Condos a Smart Buy?

It depends on the market. Traditionally, one-bedroom units appreciated less than larger condos. However, in places like Manhattan or San Francisco, one-bedrooms have performed well due to strong demand from singles and young professionals. In high-priced markets, they can be just as viable an investment as two-bedroom units.

Can a Condo Ban Smoking?

Yes—in shared spaces. Condo boards can ban smoking in common areas like lobbies, hallways, and clubhouses. Outdoor bans are harder and often depend on local laws. Boards cannot typically ban smoking inside privately owned units unless secondhand smoke is demonstrably affecting neighbors. Review your community’s Covenants, Conditions & Restrictions (CC&Rs) to know what’s allowed.

Are Condos Required to Be Handicap Accessible?

Not all. The Americans with Disabilities Act (ADA) applies to public accommodations, not private residences. However, under the Fair Housing Act, new multifamily housing must meet certain accessibility standards. Owners and associations must also make reasonable accommodations or modifications for residents with disabilities, depending on the property’s use and ownership structure.

How Do I Evaluate a Homeowners Association?

Before buying a condo or a home in an HOA-managed community:

1. Read the CC&Rs – Can you follow the rules?
2. Check Financials – Are dues stable? Any upcoming assessments?
3. Meet the Board – Are they reasonable and focused on property upkeep?
4. Talk to Residents – Are they satisfied with how the community is run?

A poorly managed HOA can reduce property values and create friction. Do your due diligence.

How Do I Project Rents on a Rental Property?

Lenders typically require a rent survey by a certified appraiser. To estimate rental income, consider:

• Past rental history
• Market comparables
• Property condition and location
• Local vacancy rates

Also factor in expenses like taxes, insurance, repairs, and reserves. Lenders want to ensure positive cash flow and financial sustainability.

Condos vs. Single-Family Homes—Which Is Better?

Both have pros and cons:

Condos	Single-Family Homes
Lower price point	Higher privacy
HOA handles maintenance	More autonomy
Shared walls/common areas	Yard and space for expansion
HOA dues and restrictions	More personal responsibility

In some markets, condos have matched or exceeded the appreciation of single-family homes. For urban dwellers or those looking for low-maintenance living, condos are a smart choice.

Is a Vacation Home a Good Investment?

Yes, if you can afford it. Benefits include:

• Tax deductions for mortgage interest and property taxes
• Rental income if you rent it out
• Long-term appreciation potential
• Future retirement home

However, weigh the added costs: second mortgage, insurance, maintenance, and travel. If you rent the home for more than 14 days per year, it’s considered an investment property—and different tax rules apply.

Should I Trust Get-Rich-Quick Real Estate Schemes?

Be skeptical. While real estate is a powerful long-term wealth builder, most experts agree: there is no “get-rich-quick” formula.

• Some programs offer real strategies (e.g. buying foreclosures or fixer-uppers)
• Others are gimmicks or scams, often sold with overpriced seminars or “systems”
• Most legitimate information is available directly through government agencies

If a deal sounds too good to be true—it usually is. Stick with proven strategies and do your research.