If you’re on the hunt for budget-friendly property investments, condos for sales under 20k might sound like a fantasy. But across select parts of the United States—especially in distressed or overlooked markets—these kinds of deals still exist.
Although rare, these ultra-low-priced condos offer a unique opportunity for cash buyers, first-time investors, or anyone looking to expand their real estate portfolio without overleveraging. The key is knowing where to look, how to evaluate the risks, and how to act quickly before they’re gone.
These affordable properties are often found in areas with high foreclosure rates, aging infrastructure, or underdeveloped neighborhoods. However, with the right vision and strategy, what others see as “troubled” properties could become a profitable asset.
One of the main advantages of these low-cost condos is the incredibly low barrier to entry. Unlike most real estate markets where you’ll need a hefty down payment, with a sub-$20,000 property, you might be able to pay entirely in cash—eliminating mortgages and interest altogether.
Another huge plus is the potential for solid rental yields. While these units might not appreciate rapidly in value, their cost-to-rent ratio can make them incredibly lucrative as rental properties, especially in markets with high demand for affordable housing.
Of course, there are pitfalls to avoid. Many condos in this price range come with hidden costs—like deferred maintenance, special assessments, or unstable homeowners’ associations (HOAs). That’s why due diligence is critical before making a move.
Why Are Some Condos Selling for Less Than $20K?
While it may seem surprising, there are valid reasons why condos for sales under 20k can exist:
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Distressed Sales: Properties in foreclosure or sold through auctions are often deeply discounted.
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High Crime or Low Demand Areas: These regions tend to have lower property values overall.
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Deferred Maintenance: Some units need significant repairs or updates, which reduces their upfront value.
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HOA Financial Trouble: Buildings with poor management or financial instability can lose value quickly.
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Remote or Declining Locations: Some rural or economically shrinking areas have a surplus of unsold properties.
Top U.S. Locations to Find Cheap Condos
Although not common, here are some places where you may still find condos for sales under 20k:
1. Detroit, Michigan
Detroit has long been a hotbed for cheap real estate due to its history of economic hardship. While the city is bouncing back, you can still occasionally find condos in this price range.
2. Cleveland, Ohio
Cleveland’s east side neighborhoods and older developments can offer surprisingly low-priced units that still have good rental potential.
3. Birmingham, Alabama
With a lower cost of living and limited new construction, Birmingham has a handful of distressed condo units available under $20,000.
4. Jackson, Mississippi
Jackson’s struggling housing market has led to many investor-friendly deals, including condos priced well below market value.
5. South Florida Auctions
If you’re among the many real estate investors in Florida, you may already know that public auctions and estate sales in South Florida sometimes list distressed condos at shockingly low prices. While rare, they’re not unheard of in older buildings with financial challenges.
How to Buy a Condo Under 20K: Step-by-Step
Getting your hands on one of these bargains takes strategy. Here’s how to do it:
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Use Foreclosure & Auction Sites
Check websites like Auction.com, HUD Home Store, and county court sales for cheap listings. -
Work with Local Agents Specializing in Distressed Properties
Not every agent works in this niche. You need someone with experience in handling REOs (real estate owned), HUD homes, and tax liens. -
Get Your Cash Ready
Most of these sales won’t qualify for traditional financing. Have your funds or proof-of-funds letter ready. -
Research the HOA
Ask for financial statements, meeting minutes, and special assessment history to ensure the building is stable. -
Get a Home Inspection
Even on cheap properties, an inspection is crucial. Small repair issues can become major costs. -
Be Ready to Renovate
Budget for cosmetic upgrades, code compliance, and essential repairs.
What to Watch Out for
There are risks associated with buying condos for sales under 20k. Here are the most critical:
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High HOA Fees: A low purchase price can be offset by unreasonable monthly dues.
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Special Assessments: Unexpected charges for building repairs can hit without warning.
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Neighborhood Risk: Some areas may have higher crime or low rental demand.
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Building Code Violations: Older properties may need major upgrades to pass inspections.
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Difficulty Reselling: These types of units can be harder to flip or refinance.
Are These Condos Good Investments?
It depends on your goals. If you’re a cash buyer looking to generate positive cash flow, even a $500/month rent could provide massive ROI. Let’s say you purchase a $17,000 condo and rent it for $600/month. Even after $100/month HOA fees and $50/month for insurance, you’re left with $450/month net.
That’s an annual yield of around 31%, not including appreciation.
However, these kinds of investments are best for experienced or hands-on investors—not passive ones. You’ll need to do your homework, stay involved, and be ready for occasional headaches.
Best Exit Strategies for Cheap Condo Investors
Here are a few smart ways to capitalize on your purchase:
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Rent It Out Long-Term: Generate steady income with low risk.
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Resell After Renovation: Fix up the unit and sell it for double or triple the purchase price.
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Offer Rent-to-Own Deals: Attract tenants who eventually want to buy.
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Short-Term Rentals (Where Allowed): If the area allows, list on Airbnb for higher returns.
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Bundle With Other Properties: Sell a portfolio to investors looking to enter the market quickly.
Conclusion
Condos for sales under 20k may sound too good to be true, but for savvy buyers who know where to look and how to act fast, they represent an incredible entry point into real estate investing.
While these properties do come with risks—like HOA challenges and repair costs—the low purchase price offers tremendous room for ROI. In the right hands, even a low-end condo can become a valuable asset that produces cash flow and long-term equity.
Make sure you do your homework, work with professionals, and inspect thoroughly. With the right due diligence, these hidden gems could be your first step into a profitable real estate journey.
Frequently Asked Questions
Q: Are condos under 20k worth the risk?
A: They can be, especially for cash buyers. The key is understanding the condition of the unit, the building, and the HOA.
Q: Can I finance a condo under $20,000?
A: Most lenders won’t approve loans for properties under $50,000. Cash or hard money is usually required.
Q: What are common issues with these types of properties?
A: Deferred maintenance, high HOA fees, or neighborhood instability are the most common challenges.
Q: How do I know if the HOA is stable?
A: Ask for financial statements, budgets, and meeting minutes before buying.
Q: Can I flip a condo bought for $20,000?
A: Yes, especially if you renovate and buy in an improving market. But reselling may take time and effort.