Nick Perry identifies three property types to avoid: condos with high HOAs that are hard to sell, homes built 2020-2023 with cheap materials and expensive repairs ahead, and the nicest house in a declining neighborhood. All three tank your cash flow and resale value.
Never ever ever buy these three kinds of properties. They will drive you insane and mess up your profit on cash flowing properties. Number one is condos. These are the hardest to sell, finance and have a really high hoa. What makes things worse is if there's ever a market crash they're the first to fall in value. Number two, anything built between 2020 and 2023. See at this time there was a massive shortage of quality building materials like lumber. What builders did is they used really cheap, low quality materials which will lead to multiple five figure repairs every two to five years. And last but not least, you want to avoid buying the best house in a really bad neighborhood because you're already buying at the top which means that there is no room for improvement. And when there is no room for improvement there is no room for additional profit. So if you're thinking of buying a new property, don't forget to.
