Condos going rental

best way to mitigate... don't buy in risky projects in a risky market.

...and for that matter, don't buy a condo. Even if the units sell, there's a good chance the new owners won't live in them.

If you want a high rate of owner-occupancy, buy a coop.

But if it's an investment property that you (eventually) want to rent anyway (hence the condo, not a coop), at what point does the rest of the building (or a high percentage of it) being rentals equate to "too much competition" or limiting your resale potential?

how much is too much, is the question, i guess...

When I bought a condo in Connecticut in the early 90s my complex was 40% rental. Resale values were in the dumps. And I was told that I would either need to increase my down payment or get private mortgage insurance. (Banks do not like high rental percentages.) The rental percentage subsequently went down to 5% or 10% but values were impaired at the 40% level.

Hope that provides at least some perspective.

I'm a little confused by your example.

Are you saying that they got rid of rentals for the most poart, but prices never recovered? Why would they continue to suffer from the old/outdated rental percentage? Was it a perception issue that never got shaken?