I Could Buy A Condo Need Ideas Fast
Seller is offering a 1b 1ba condo for 35k
will owner finance with 3k down and 32k over 30 with a balloon after one. Rent for approx. $700 per month. He says he REALLY needs to sell. I said there does not seem to be enough on the table for myself after the association fee 268.00 is paid and he is paid each month. Does anyone have any ideas on how I should approach this deal.
Tom
PS Out of state deal should I be worried?
Ballon in 24 months instead. It will be easier to get a convential loan. ** Many lenders want seasoning of 12 months, but 24 will make you more marketable. (especially for a condo under 40k)
Have the owner take Interest-Only payments.
Thanks for the reply. Problem is I have horrible credit. I am closing on a 3 fam in 2weeks(selling) that should net me 60k (took 3 yrs). Should I make a cask offer?
Any help would be highly appreciated.
Tom
Also, has anyone bought condos out of state? What are your feelings on this?
Tom
Never bought a condo but I do know that sometimes you need to really know whats going on at those particular condo's. For example, Are they getting ready to get assessed? That could be very expensive depending on what kind of problems they are having. I live near the ocean and there have been condos with major erosion problems and each owner has been assessed $10,000 for the major repairs that are needed. Be careful of condos unless you are very familiar with them. As you said he "really" needs to sell - have you asked him "why"? Sometimes a really "great" deal isn't so great. GOOD LUCK!
PE is right. You need to check and make sure no huge special assessments are on the horizon. The rent looks good. And for out of state, I haven't ventured there yet as I have a preference for being in driving distance - 4-5 hours away tops. And... because it is a low priced condo, when and if you acquire a loan, fees will be out of proportion for the loan amount. Been there done that, however the little 1 b 1ba helped me get a good start in REI.
Thanks for your feedback. Its really making me re-think this through.
Tom