Condo Good Deal Or Not?
ok heres the scoop fully furnished condo in an apartment complex that just started selling the condo's out right . The price is 112,000 rents for 1050. loan is 5.75 %30 year fixed condo assc. is 125. I'm only putting 5,000 total down including closing costs. net rent would be ++100 a month plus great equity potential soooooo what does every one think. I also must mention the condo assc includes sew,water,cable,basic phone,trash so maybe I could boast rent even further up. I appreciate all the help
If they are selling them off, you may want to make a deal with the condo association to buy all that are available. In turn you would get a discounted price. Even if you set them up as lease options, you could still make a killing. I cant tell you whether you got a good deal or not, since I dont know the FMV of the condo you are buying. I consider a good deal at 70% of FMV, but if I am making money I am not complaining.
You may want to also look into buying out the condo association that owns the apartments and make them an offer to buy the company as well. If it isnt for sale then at least make an offer for all of the condos. You could set it up, to buy all of them within a certain amount of time, and just sell them off before your contract expires. (No money or low money down deal)
I dont know your rental rates in your area, but I would assume that they dont include the extra's. That being said you may want to have your tenant pay the condo fees as well or if they balk, split them down the middle.
Good Luck,
Kyle
My accountant is also my lender she has set up this condo as a second home for me so I can get a better rate % wise. I have a question if I hold on to this property for at least 2 years being that it is a "second home" do I have to pay capital gains on the flip?The fair market value of the condo is probably 119,500 by the way so it's nowhere near 70%of fmv. I also have another condo in my town that is not considered a second home would I have to pay capital gains on that 1 even if I had for more than 2 years?