There are many factors to consider when looking to purchase a condo or townhome for investment purposes. I recommend several things. First, use a REALTOR and a very experienced lender. The first thing an investor should check before buying is if this potential investment could be purchased by an FHA or Fannie Mae buyer. Why? Because it affects value. Within the last five years, many condos and townhomes have been foreclosed which affected the eligibility of the complex or building to be approved for FHA financing. Check your site here. If you are a cash buyer, still check with the best mortgage lenders to make sure the unit you have in mind can easily be financed when you choose to sell it. Check wtih the HOA to make sure they are well funded. Get a copy of the annual report. Find out exactly what the HOA fee covers, what the community asessments might be, is there any potential litigation with the HOA and always read the Bylaws and CCRs. I still contend buying a single family home is usually the best real estate investment for the average investor. But occasionally a really great condo or townhome deal comes along and doing your homework will make it a great investment as well.