Condominium

Buying a condominium means owning your unit outright and a share of the hallways, roof and grounds, which an owners' association runs. Condos can work for BRRRR, but association rules, dues and the building's own finances add limits that a single-family house does not have.

Rehab scope is narrower in a condo: the investor controls the interior, while the roof, exterior and systems belong to the association. That caps how much value the renovation can add. Monthly dues also come out of cash flow, and the calculator treats them as a separate expense.

At the refinance, lenders review the building as well as the unit. Rental caps, a high share of investor-owned units, pending litigation or thin reserves can make a condo harder to finance. Checking the association documents before buying avoids finding that out at the refinance.

Further reading: Condominium on Wikipedia.