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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Definitely an amateur. What's wrong with a condo? The benefit is that most items that can go wrong are condo assn's fault, so you dont' have to manage them.

I have both a SFH and condo rental. The condo rental is much easier.

Now as for market, if it was me, I'd pick a 2BR 2BA condo in Bethesda. Lots of new apartments going up, and the 2BA thing makes it really desirable among those who have a roommate. However, $200k won't buy much of anything in Bethesda.

Also who cares about HOA fees? It's a business expense if it's a rental property anyway. Factor it in to your costs.[/quote]

OP here.  Thanks for your thoughts and yes, I'm a bit of an amateur.  Here's my thought process around a condo.  If the HOA charges $100-$200/month, that is going to eat into my cash flow.  Given that I'm going to have a mortgage, that won't leave much for extra cash flow.  I do understand your point that a condo or TH might be easier to manage and I will take that into consideration. Generally though, any additional costs, including HOA, that I feel I can eliminate is more money in my pocket.

Question - if there are a lot of new apartments going up in Bethesda, wouldn't that drive rent prices down?  Or am I missing something? [/quote]

Yes, an HOA/condo association costs more than not having one, but so what? You need to look at the total number. For example, I have a rental condo in NW DC and my condo fees are just under $400/month, but I also rent it out for $2,400/month and my mortage is $1,100 month.

As for rent prices in Bethesda, that's a too simplistic view of supply/demand. IMO, Bethesda is not going to go out of style any time soon. It's close to DC and major roadways, and close to the Metro. It also has a decent downtown area in terms of activities and restaurants. That's really driving demand, and probably why all the condos are going up in the first place. One thing I think we can say with certainty is traffic in the DMV will just get worse over time, so the premium of being located close to a metro and close to the center should increase. Where I'd say it's risky is a place like Ashburn or Clarksburg (MD). No nearby metro, not much of a "downtown" and long drives to everything else.[/quote]

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