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Three Simple Steps To Rent Your Las Vegas Investment Property Quickly

The real estate rental market in Las Vegas is competitive and also very lucrative. As a real estate investor, you’ll want to make sure you take some simple steps to make sure your rental property is the home that prospective tenants choose. Here are some simple tips to make sure your Las Vegas Investment property rents quickly.

  1. Competitive Price

The monthly rent price is your first step in getting prospective tenants through the door of your Las Vegas investment property. Setting your price is pretty simple. Ask your property manager to run a competitive rental analysis of the other rental properties in your neighborhood.

They can tell you what’s a good price for your Las Vegas rental property. A good rental price will make sure you get interest from prospective tenants, but getting them in the door is only half the battle.

The next two steps will make sure your home is the home that quality tenants choose over the competition.

  1. Flooring, Paint, and Window Coverings

Homes with new paint and clean carpets are always going to rent faster than those without. As a rental property owner, just accept the cost of replacing carpets and painting after tenants move out as a cost of doing business. People may live in places with dirty carpets and walls, but they usually won’t choose to move into one.

Also, many of the tenants I meet with actually prefer tile and hard wood floors to carpet. So installing some pergo or tile is a good way for a property owner to avoid having to replace carpets every few years.

Another simple way to make your place stand out from the competition is to put nicer blinds up on your windows. You don’t have to put plantation shutters on all the windows in your rental property, but some low cost faux wood blinds with thick slats look a hundred times better than the cheap aluminum ones. Take a look at the bigger picture and spend the money to get a tenant in and paying rent as quickly as possible.

 

  1. CLEAN!

I am shocked how many rental properties I show that are filthy. You obviously won’t be able to clean your rental property every day, but a good cleaning after a tenant vacates and every two weeks that your property is vacant will help to insure that your property won’t stay vacant for two months.

Rental Properties in Las Vegas take anywhere from a few days to a few months to rent. Taking these simple steps will keep your Las Vegas rental property ahead of the competition.

Las Vegas Real Estate Owned Properties

Las Vegas REOs are a less complex and often better way to purchase distressed properties than having to deal with a seller facing foreclosure, or at auction. There are some real bargains out there, and many Real Estate Owned properties can be found that are under-priced and marketed at attractive under comparable sales discounts.

No question, but that the really “hot” properties, in other words, true bargains, will receive multiple offers. In order to tempt the lender with the most attractive offer –while still maintaining a healthy profit margin- is to have your Realtor check the bank’s purchase price on the deed.

That is the figure that you need in order to compare figures with the price the bank now wants for the property. Certainly some competitors for the property will offer more than list price, so you need to be careful to avoid a bid that will negate your profit margin if you are buying the property as an investment.

Your Las Vegas real estate agents will guide you in the right direction as far as arriving at an offer that is profitable to you and simultaneously acceptable to the lender.

Your agent will run a neighborhood Comparative Market Analysis check (CMA) on the property, interact with other agents for information on pending sales prices, if possible, check on the lender’s listing agent’s  recent MLS postings and through these investigations, determine a list-price to sales-price ratio. Offering a percentage or two over that figure might be a deal closer as far as the lender is concerned.

Another thing to keep in mind is that although the lender certainly will not give the property away, bids are welcomed and appreciated. REOs are loans gone bad. REOs don’t pay interest, and the bank has an even lesser interest in owning property. They are not in the real estate business.

Even if you are an experienced investor, the agent representing you should be experienced in the bidding process, and rules and regulations governing the purchasing of REO properties, whether they are bank-owned, HUD, VA, etc.

For example, an experienced investor/agent team will know that an all cash offer has the best chance of beating out the competition. If financing, a lender’s pre-approval letter is a must. It’s a good idea to get a pre-approval not only from your lender, but from the lender who is selling the property as well, even though the seller will not be financing the property sale.

Other procedures required to finalize an REO purchase will include a limited-time inspection period, transfer fees, title insurance, and an appraisal.

Although REOs can have downsides and may not always be a super bargain in terms of price and profit, when REO inventories are high the profits can get better.

If you have any questions about investing in Las Vegas Real Estate, feel free to give us a call at 702-376-0088.

The New Investor in Distressed Properties

The possibilities of making big profits in distressed properties has lured many new investors into the field. Many, surprisingly enough, are willing to risk financing these kinds of properties without the knowledge and expertise, much less the experience of the successful, long-time investor.

Frequently, these newcomers rely on “instinct” rather then on the advice of knowledgeable professionals, such as real estate agents and attorneys. Their hunger for quick, profitable deals and lack of true market knowledge most often leads to investments that either do not materialize, or turn out to be money-losing propositions.

These entrepreneurs often do not know of all the options an owner of a distressed property may have before actually being foreclosed, such as:

  • If the owner is in a higher than debt equity position, but has fallen behind on payments to the lender, he may opt for a quick sale to get out from under the mortgage
  • Deed in lieu of foreclosure – giving the deed to the lender – may avoid foreclosure, but is not the best of all possible options
  • Short Sale: The borrower must convince the lender to allow the property to be sold, even if the sale price is less than what is still owed on the loan.

The borrower must additionally ask the lender to agree that no further action against the borrower to collect any balance still due on the loan- after the sale of the property – will be taken. The possible tax ramifications of such a sale may not leave the seller free and clear of all debt.

“Jumping” into a distressed property purchase, without a complete understanding of the process, and without a skilled advisory team is often a recipe for financial disaster.

Without these advisers, how will the new investor know the true market value of a distressed property, particularly in a difficult market such as the present?

Certainly, the new investor should be aware of the outlay of funds required-other than the purchase price- such as appraisals, home inspections, title searches, financing conditions, rehab and upgrade costs, etc.

Further investigation may be needed to uncover possible second or third mortgages, contractor’s liens, judgments, and so on.

Additionally, the new investor who finds a truly profitable investment, will rarely be the only one who knows about the property, and will quickly find himself up against the old pros, savvy, long-time investors with deep pockets, who will be difficult to compete with.

At this point, all we can say to the new investor is, do not take the plunge into distressed property investment until you have thoroughly familiarized yourself with the market in which you are playing. Put together the best advisory team possible, and make sure your funding sources will enable you to make the purchases that will make you the kind of money that drew you into this investment field in the first place.

If you have any questions about investing in Las Vegas Real Estate, feel free to give us a call at 702-376-0088.

Added Value Properties

Added value properties are properties that for one reason or another are undervalued, but with renovation, sometimes minor, sometimes extensive, investing in these properties could be profitable.

This is dangerous area for new investors, particularly those with a get rich quick mentality. Careful analysis by an experienced investor and his/her investment advisers is a requirement of good judgment and the only way to make a qualified decision as to whether the deal is worth pursuing or walking away from.

How to recognize a possibly under-valued property that with some tender love and care would add value, might make a worthwhile investment takes experience in evaluating real estate investment targets.

Some examples of a possible added-value investment property:

  • A rental property in which the owner is not experiencing the expected cash flow from the investment. Possibly the current owner is unaware of how to track rental market trends or inexperienced in finding the right kinds of tenants and is experiencing high tenant turnover.
  • The neglected, vacant property of an out of town owner, who doesn’t need the money, and may have not as yet gotten around to having the home fixed up and marketed.
  • A for sale by owner (FSBO) home that has fallen into disrepair due the owner’s lack of funds. The owner has little knowledge of the property’s true market value, and is selling the property in “as is” condition.
  • The owner was recently deceased, and the beneficiaries are out of town and anxious to sell. The property may be in some disrepair, maybe minor, possibly major.

The beneficiaries are reluctant to put any money into the property for renovation, and may be putting pressure on the listing agent for a quick sale and might be amenable to selling at an attractive under-market value price to a qualified buyer.

  • The once residential home is now in an area that has been re-zoned for commercial use, and the owner is not inclined to be a landlord to a business owner tenant and would rather just sell the property.

There are many other reasons as to why a property could be targeted by the investor as an added value prospect, and as mentioned previously, it takes real know-how to identify and analyze a real estate investment of this nature.

As any experienced investor knows, it takes the knowledge, resources and experience of a real estate agent who knows how to recognize these kinds of properties to find the investments that may be worth pursuing.

If you have any questions about investing in Las Vegas Real Estate, feel free to give us a call at 702-376-7379.

The Handyman’s Special

Why Fixer-Uppers Are So Popular

Although not all investors are attracted to these kinds of Las Vegas Properties, some real estate investors look for nothing else but properties in need of repair. This can be understandable, when on the surface it may appear that a motivated seller may be willing to part with his run-down parcel of land for as much as 20% to 40% under potential market value.

Of course, the inexperienced Las Vegas Investor may look only on the bright side of the picture, such as creating equity with minimum up-front cash, using government money and low interest loans to rehab eligible properties into saleable or rentable condition, or flipping a “ fixer-upper” for big profits, with a minimum outlay of funds.

All of the above speculations are not only possible, but are frequently accomplished. However, the experienced investor doesn’t only see the bright side, but will carefully evaluate possible pitfalls and cash outlay estimates after purchase before making a commitment.

As with any property purchase, and particularly with a handy-man special, a thorough building inspection by a licensed contractor is a must. Any problematical finds, such as structural damage and the extent of that damage, must be carefully evaluated before deciding to buy or walk away.

Another important consideration when dealing with this kind of investment is the outlay of funds required to repair and refurbish the property. If you are a do-it-yourself craftsman, you will probably be able to handle cosmetic repairs such as painting, cleaning, minor plumbing and electrical repairs such as leaking faucets, or replacing a light switch, etc., but, more extensive repairs would probably involve the cost of hiring a licensed contractor, especially if the building needs to be brought up to code.

All of these factors, other than just the purchase price must be carefully evaluated before making any commitments. Future use of the property, and a realistic exit strategy are other important considerations.

At this point in time, when selling prices are down and inventories are high, many investors in rehab homes would prefer to fix up and rent, rather than compete in a “buyers market.” Favorable cash flow from monthly rentals will allow the investor to bide his/her time waiting for an up cycle in the marketplace, as inventories gradually diminish and selling prices begin to rise.

Lastly, although CPA’s and real estate attorneys are valuable members of any investors team, a good Las Vegas Real Estate Agent is the key person on your team that can help you build wealth.

A good real estate agent, one that has experience in finding the kinds of properties you are looking for, and is in tune with your goals and business practices, are your eyes and ears in the marketplace.

Above all, the smart investor knows that connecting with a reliable agent will not cost you money, but actually help you to make money.

If you have any questions about investing in Las Vegas Real Estate, feel free to give us a call at 702-376-0088.

Investing in Las Vegas Real Estate – Finding Ideal Investments in Ideal Locations

The knowledgeable Las Vegas Real Estate Investor can be differentiated from the less astute investor by the fact that the overeager investor often looks to purchase any property or properties he or she can find based almost entirely on price: if the price is right, the property is purchased!

However, the really successful investor will only purchase properties that fit within particular financial parameters as well as pre-established goals and guidelines that are not strictly based on price. These are the investors whose real estate deals are consistently profitable.

Certainly, an investor whose buying strategy is based strictly on buying low, may not always be able to sell high. The reason for this is that little or no attention has been given to so many other factors that could, and probably will often negatively impact the resale value of these properties.

Differentiating between a desirable and a not so desirable property takes experience, and a backup team of realty, legal and taxation professionals.

The successful investor will make no offer to purchase any property unless the residence meets the investor’s established guidelines and the long or short term profitability of the purchase is confirmed, and only after consultation with the investor’s team of experts.

Part of the evaluation process –aside from price – that is used by the successful investor to determine the worthiness of a property include the following:

  • The neighborhood:  Property located in a stable, established, well-kept neighborhood may pose a better opportunity for a profitable resale than a newer neighborhood which may or may not develop into as desirable a location. Certainly, property in newer developments have often appreciated nicely, but an established neighborhood with a history of consistent value appreciation is the safer goal.
  • The Location: Houses located on Cul- de- Sacs or corner lots may be more desirable and appreciate a bit more than the surrounding properties. The property’s current and future value is additionally dependent upon a neighborhood location that would be most desirable to families.
  • The physical condition of the property is another important consideration. If the home is in less than perfect condition, are the defects merely cosmetic, or would it take an expensive rehab job to get the property into saleable condition?
  • Will this home be suitable for purchase as a rental property in order to generate long-term cash flow, or purchased for a quick resale?

Of course, we’re just scratching the surface here, within the limited scope of this article but the bottom line is that the key to real estate investing success is to understand the market and which way it is headed. No easy task, unless you have the experience and the back up of a knowledgeable investment team to guide you.

If you have any questions about investing in Las Vegas Real Estate, feel free to give us a call at 702-376-0088.

Investing in Las Vegas Real Estate – Flipping Properties

The term of “flipping” generally applies to buyers who purchase a property or properties, and then immediately put the properties up for sale, looking for a fast turnaround and quick profit.

Some scenarios involve “finders,” people who work with investors. Their purpose is to find and investigate properties for sale that meet an investor’s criteria, similar to a broker or Realtor, but unlicensed, and in many states illegal.

Since “finders” are basically engaged in the business of bringing buyer and seller together, they are, in fact, acting as unlicensed brokers. Furthermore, investors, knowingly working with “finders” may be skirting the law as well.

In fact, most are untrained and do not have the skills or resources needed to properly evaluate the fair market value or profit potential of a given property, as would a licensed Las Vegas Real Estate Agent or broker.

Although no knowledgeable investor would associate or work with “finders” some naïve investors think that through these finders they can buy and immediately sell real estate (or “flip”) for a fast and easy profit. Nothing could be further from the truth!

Buying properties and immediately selling for a quick profit requires exceptional negotiating skills, and an in-depth market knowledge gained through long experience. In fact, it is a market strategy that only the most skilled and astute of real estate investors can consistently profit from.

The real estate crunch of the past few years has unfortunately created a false impression among naïve dreamers that anyone at any time can become an overnight real estate millionaire.

There has also been a proliferation of so-called real estate “Gurus” who write books and conduct expensive seminars, that propose to show how anyone can gain financial freedom through real estate, buy property with no money down, etc.  A few may offer good advice, but others are just money making schemes for the authors and seminar holders.

Additionally, many fraudulent real estate practices have been  associated with flipping, as get rich quick schemers have evolved practices designed to skirt the law, such as using false appraisals to alter the real fair market value of a property, kickbacks, falsified loan documentation, quick claim deed manipulation, and more.

In a market of zero price appreciation, legitimate flipping, for the most part, can make money only on rare occasions, and only if handled by the most skilled of investors. As housing prices begin to rise, flipping becomes a bit more advantageous.

It pays to remember that even when the market is good, and flippers can make a profit, consideration has to be given to the fact that the property may take a more than anticipated time to sell, and if so, did the buyer pay cash or will there be mortgage payments to consider until the property is sold?

If the property is a rehab, what about the costs involved in repair?

Approach any real estate deal with caution, and remember, if a deal looks too good to be true, beware!

If you have any questions about investing in Las Vegas Real Estate, feel free to give us a call at 702.376.0088.

Investing in Las Vegas Real Estate – The New Investor

If you are a new player in the Las Vegas Real Estate Investment game, one of the first steps you should take as part of an investment strategy – that you have hopefully planned out meticulously – is to find a good real estate agent to partner with you.

Find an agent who is in sync with your strategies (some agents prefer not to work with investors,) and has the experience and expertise to help you achieve your goals. You need an agent who can help you find and qualify the good deals, handle much of the details, and one who has worked with investors before.

Although word of mouth is one of the best ways to find a qualified agent with a solid track record of success and great references, Las Vegas Real Estate Investment Clubs are another source.

When discussing your plans with an agent you are considering partnering with and who is interested in working with you as well, be sure to explain exactly what kinds of properties you will interested in buying. Assure the agent that you will both make money from this partnership, and that you are a high-energy, aggressive and eager investor.

Another thing to keep in mind, is that if your buying strategies involve sending out a flood of low-ball offers in order to consistently close deals, some agents would rather not work with you.

That is why it is so important for the agent or agents you are interviewing to understand what your investment strategies and goals really are. You have to be as forthright and honest with them as you expect them to be with you.

Now, what about buyers? Certainly, your strategy for investing in Las Vegas Real Estate has included contingencies for dealing with willing buyers who are handicapped with marginal credit.

Many of your buyers may be able to acquire a mortgage on their own, but buyers with a passable, but not very impressive FICO score, probably would not qualify with most lenders.

This is where another very important member of your investment team, your mortgage broker, steps in. If you are closing on properties monthly, you are going to attract brokers willing to work with you. Find a broker who has the expertise and lender contacts to obtain mortgages for people with marginal credit.

Don’t expect miracles, however. A buyer must meet certain, even minimal standards of acceptance, but if those criteria are not met, obtaining a mortgage will not be possible.

If you are a quick-turnover investor, you will need a broker who can close deals quickly, and will be available when needed. Assure the broker, as you did your real estate agent, that you want everyone on your team to make money. Consistently closing deals will be all the assurance they need.

If you have any questions about investing in Las Vegas Real Estate, feel free to give us a call at 702.376.0088.

Investing in Las Vegas Real Estate – Pre-Foreclosures and Foreclosures

Negotiating to buy distressed properties from a lender certainly shouldn’t trouble the conscience of an investor; however, some investors feel pangs of guilt when trying to negotiate a deal with a Las Vegas Homeowner in financial difficulty.

If you are a creative investor with a conscience, you are not trying to take unfair advantage of anybody. You are not a predator. Instead, you will be attempting to promote a win-win situation that relieves the homeowner of his/her burden, and creates a profitable deal for yourself. This can be done, and is frequently done.

Las Vegas Homeowners in financial difficulty, and who are in danger of losing their home, but are not as yet in a pre-foreclosure situation, would certainly welcome the opportunity to sell at a fair price, and the lender would equally be freed of the expense and difficulties involved in foreclosing and trying to recoup at least a part of their investment.

Seems only fair that the investor should earn a certain profit for his efforts and output of funds. Besides, depending upon the condition of the home, the investor may have additional expenditures for repairs and upgrades necessary to increase the property’s value.

If the homeowner is already in a foreclosure situation, the investor must contact the borrower first, and cannot approach the lender or learn details of the borrowers overall financial situation from the lender without written permission from the borrower.

Once the negotiation process has begun, the investor, regardless of whether dealing with a bank, private lender, or a government agency ( FHA, VA, etc.,) will no doubt have an exit strategy that will include contingency clauses in the proposal. These clauses basically gives the investor an “out” if, for example, the appraisal report is negative for one reason or another, or if a home inspection reveals certain serious problems, such as structural damage.

Additionally, the investor may -unless it is an all cash purchase- specify in the proposal agreement that the purchase is contingent upon the investor obtaining financing under specific terms and conditions.

We are only scraping the surface at this point, since there are many other factors to consider as an investor in foreclosure and pre-foreclosure property.  Since this type of real estate investing can be as complex as it is profitable, it probably should be avoided by a new player in the field, and left to the expertise of a more seasoned investor who conferences with advisers that have considerable experience in this specific area of real estate investment.

Negotiating the purchase of a pre-foreclosure, buying a property at a foreclosure auction, or purchasing the foreclosed property from a lender each take a different negotiating tactic which will be covered in brief in the second part of this article.

If you have any questions about investing in Las Vegas Real Estate, feel free to give us a call at 702.376.0088.

Las Vegas High Rise Condos

The Las Vegas Condo-Hotel Concept

The veritable explosion of high-rise condo construction in Las Vegas has not only dramatically altered the city’s skyline, but has considerably altered the lifestyle of many Las Vegans, and the repeat visitors to our city.

Prior to  the proliferation of hi-rise condos in Las Vegas, repeat visitors such as vacationers, businessmen and women, and high rollers would primarily check in at a hotel, motel or, depending on the reason and length of stay of the visit, rent a private home on a temporary basis.

The availability of conveniently located luxury condos convinced many of these repeat visitors that it would make economic sense to purchase a Las Vegas Condo home of their own, that in the long run would build equity, and be more cost-effective than renting a hotel room or suite and dining out for every meal.

Additionally, many investors were attracted by the offer of many of the big name luxury hotels such as the Ritz-Carlton, Sonesta, Starwood, Hilton, Trump, Four Seasons, etc. to purchase units (condo-hotel homes) that are part of the hotel structure, or luxury units built as adjacent structures to the hotel, such as Palm Towers, for example.

These condo hotels offer owners who plan to use their purchases as vacation homes, or use the condo intermittently on business trips, the opportunity to temporarily rent out their units when the owners are away.

Benefits are twofold.  The owner agrees to place the property into an organized rental program, saving the unit owner the trouble and expense of self-advertising, and rental revenue, shared with the rental program operator, allows a portion of the rental fees to be credited to the condo owner.

The operator of the rental program who shares rental fees with the owner, performs a number of services on behalf of the property, among which are marketing the unit to temporary renters as a hotel, maintains the property, supervising the front desk, overseeing housekeeping services, providing- concierge services, and food and beverage services.

Another attractive aspect of condo hotel ownership that has appealed to investors is that these units can be sold at anytime by the owner at his/her discretion.

The vacation home convenience and income potential of owning these units was an irresistible attraction to many investors who are frequent Las Vegas visitors, however, these purchases have proven just as vulnerable to the downturn in the nation’s economy as has the rest of the housing industry.

Additional information that a potential condo-hotel unit buyer should be aware of before considering this kind of investment will be covered in a follow up article, and will include such details as:

  • Typical buyer/management agreements
  • Guarantees –if any – offered to the buyer
  • Analyzing the units for best location, amenities, etc.
  • Key elements to look for when analyzing the profit potential of a condo-hotel purchase

Feel free to give us a call at 702.376.0088 with any questions about the Las Vegas High Rise Condo market.

Las Vegas Homeowners’ Association Issues

There are a number of issues in which a  Las Vegas Property Manager becomes involved when working with a Homeowners Association, issues that involve tact, people skills, communication and thorough knowledge of – in the State of Nevada – NRS 116 – Common Interest Ownership (Uniform Act).  The manager is often called upon to interpret different aspects of NRS 116 to guide the HOA Board of Directors in decision making or to suggest a consultation with the HOA attorney, if necessary.

One situation which frequently causes emotional reactions by homeowners in Las Vegas relates to xeriscaping of grass areas in front of condominium units.  While these areas are actually not owned by each individual homeowner and are considered common elements, those homeowners who prefer retaining the grass feel that a vote should be taken and no changes made without majority decision.

However, Homeowners’ Association Boards believe that planting drought tolerant landscaping saves money and that xeriscaping is strictly a Board decision.

In this matter, the property manager has to put aside his or her own personal preferences and either guide the Board to the appropriate section of NRS 116 or refer them to their attorney for a legal opinion.

The decision almost always causes one faction of the community to be resentful and the manager must help the Board to present the ruling to the homeowners in a tactful manner to avoid creating long lasting hostile feelings among dissenters.

Another often emotional issue relates to removal of one or more of the members of the Board of Directors.  This occurs when either an unpopular decision is made by the board in its entirety or if the actions of one or more officers are found to be offensive by a number of the homeowners in the community.

This is not an action to be taken lightly and requires a good deal of planning by the aggrieved homeowners who must obtain a specified number of signatures on a petition calling for a special meeting for a removal election.  Experts in Las Vegas Residential Property Management have stated that  recall of a board member is usually difficult.

The property manager is responsible for guiding the homeowners through the intricacies of a removal election.  In the latest 2009 update to NRS 116 Community Association information, it has now become easier to remove members of the executive board.

In order to remove a board member, if at least 35% of the voting members (homeowners) vote in favor of recall, then the board member or members are removed.  To be specific, if there are 100 voting members in a community and 35 of these individuals vote – with only 18 homeowners voting in favor of removal, then the recall process is successful.

Investing in Las Vegas Real Estate

Condominiums

Investing in Las Vegas condominiums is no different than any other real estate property investment. Knowledge of current market conditions, working with an experienced, knowledgeable Realtor, and having a real estate attorney and CPA on your team will certainly help to ensure that intelligent investment decisions will be made.

In the recent past, certain cities, such as Miami and Las Vegas, for example, experienced explosive growth in condominium construction, and condo homes were being sold as fast as they were being built, with even pre-construction units being quickly snapped up.

Current market conditions, particularly in these two cities, reflect an entirely different scenario. Despite a glut of willing buyers, and an equal glut of distressed condo units on the market, many selling at “bargain” prices, sales are not overwhelming, and the inventory of unsold units remains high.

Does that mean that investing in Las Vegas condo units as rental investment properties should be avoided, particularly during these difficult economic times? Certainly not! Many of these kinds of investments can still become profitable, if careful planning and forethought are the guidelines used before making a purchase commitment.

Forecasting the future of any investment is never a sure thing, particularly in a downside marketplace, with no firm indications as to when and to what degree an upturn will occur. However, investment knowledge and skills, backed by reliable advisers will certainly maximize the chances of an investor making the right choices.

Condos are still popular with young professionals and retirees, and offer many amenities not available to the average apartment dweller or single-family homeowner, such as workout rooms, spas, swimming pools (sometimes more than one), tennis courts, concierge services, secured parking, building and condo unit security systems, libraries, card rooms, a clubhouse, and, balconies, city,  or mountain views, and more.

Another big plus for many condo dwellers, is they do not have to deal with the many maintenance issues involved in single-family home ownership. Some condos are part of a mixed-use development complex, with retail shops and restaurants on the premises.

Investing in condo conversions, however, are unlikely to offer the same profit potential as complexes designed and built as condominiums. Condo conversions are simply apartment buildings, with units originally rented on a lease basis, and are now tenant owned.

Cosmetic changes, simply painting the premises and possibly landscaping the property may be the only upgrades from apartment complex to a condo conversion the owners are willing to make.

Chances are, the building is an older structure and may have expensive plumbing, electrical, heating, cooling and structural problems in the near future –or sooner.

Overall, although a condo investment may not realize the future value appreciation of a single-family home, they are normally less expensive an investment, and with careful investigation and planning, a good way to leverage your real estate investment dollars.