In a previous article, we talked about luxury condominium rental for vacation. In this article, we will cover the other side. If you own or if you would like to own a condominium rental property, it can be a very good real estate investment.
Make your due diligence
However, before investing in a rental condominium, you need to make your due diligence and think of a few things. Here are a few things you should check:
- Where is located this condominium? Location, location, location is very important!
- Is the property clean and is it nice enough that you would really enjoy staying there?
- Does the co-ownership syndicate does a good job to manage the building finances?
Generate passive income
Some people invest in real estate for appreciation but if an investor wants to get out of the rat race, he needs to generate passive income through his investment. In real estate, to generate passive income, the condominium has to generate a positive cash flow.
Positive cash flow
A positive cash flow occurs when the property’s gross income subtracted by the expenses gives a good net operating income (N.O.I). Then, the N.O.I subtracted by the debt payment (mortgage) should give you a good cash flow.
For a real estate investor (property owner), it’s great to receive a monthly cash flow, while knowing that equity is growing because the mortgage is gladly being paid by vacationers. It is also great to know that the property is gaining appreciation if it’s located in a good real estate market and if it is well taken care of.
To make sure that this great scenario happens, it’s better if you are a member of the board of directors of the co-ownership syndicate of your condominium. However, a lot of investors are very busy with their professional life. A good way to be super effective is to use a video conference service and.
Taking care of business!
With those tools, all your meetings can be done from anywhere in the world. Also, with this service, your condominium co-ownership syndicate can have translation and electronic voting in the general annual assemblies. This service is calledand with it, you will really be in a position to take care of your business easily and efficiently.
Winning the rat race!
It’s time to win the rat race by being on the other side of the condominium renting equation. You can still have vacation in your condominium when needed!