UrbanTurf Reader Asks: Is It a Problem to Own Two Condos in the Same Building?

• April 30, 2012
• 8 Comments

by UrbanTurf Staff

In this installment of UrbanTurf Reader Asks, a condo owner wonders if there are any issues with purchasing another unit in the same building.

"I bought a condo a few years ago and recently saw another unit listed for sale in my building. I am considering making an offer on the unit, but am wondering if there are any issues with owning multiple properties in the same building or if this has become a common practice?

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This article originally published at http://dc.urbanturf.com/articles/blog/urbanturf_reader_asks_problems_with_owning_two_condos_in_the_same_building/5474

8 Comments

1. doug said at 3:37 pm on Monday April 30, 2012:
   Seems like a wise investment decision, but two questions: 1) Does your condo board have any restrictions preventing current owners from owning more than one unit in the building? 2) I imagine you will be renting one of the units. Are there any restrictions about how many units in the building can be rented at one time?

1. PortfolioTheory said at 4:27 pm on Monday April 30, 2012:
   sounds like you're not diversifying your risk. I mean a particular neighborhood, or particular building could have problems of whatever kind - it seems to me like it would be better to own in different buildings, and better in different neighborhoods. Seems like thats a pretty big tradeoff for convenience.

1. elky said at 4:31 pm on Monday April 30, 2012:
   If you can rent it and cover your mortgage and then some (very possible these days), then it seems like a no-brainer, assuming your building is OK with you renting it out.

1. JE said at 4:36 pm on Monday April 30, 2012:
   This very good feedback--I agree with Doug regarding owning in different areas and to make sure the homeowners assocation does not have anythign in bylaws regarding owning multiple units-but like elky said if you can cover your mortgage and THEN SOME its could very possible be a win win.

1. Josh said at 7:12 pm on Monday April 30, 2012:
   I agree with the comments made. With respect to what PortfiolioTheory says, I agree in general, but it all depends on the facts. Diversifying risk in investments is certainly important, but where you genuinely think a piece of property is undervalued or valued properly, and you can mitigate your risk (and earn income) by renting out at your mortgage rate, then I would not think there's much, if any, tradeoff.

1. saladman8283 said at 8:08 pm on Monday April 30, 2012:
   One potential down side: You may get some pressure to serve on the condo board!

1. Susan Isaacs, Realtor said at 8:09 pm on Monday April 30, 2012:
   What a great topic! Be aware that if you're not paying cash for this second unit, the mortgage loan will carry higher rates and different terms for "investment properties." I think it makes great sense to own a rental unit in your own building, as long as your tenant isn't tapping on your door at midnight about a leaky faucet. Do check with your association about restrictions and remember, in DC landlords need a business license. Some tips for screening tenants: http://www.susanisaacsre.com/tools-2-use/tenant-credit-reports.html

1. Matt Rexrode said at 8:18 pm on Monday April 30, 2012:
   Also, keep in mind that with condo financing, you will have issues with financing (and your neighbors too!) if you own more than 10% of the units in the building.