Investment Property ?

Comments(7)

• 
  BMan9th January, 2004

  One of my first rentals was/is a condo. You didnt mention association fees...
  Mine is 190 a month and so far they have not hit me up for anythimng on major projects....this is the only downside in my mind... they do take care of some insurance and garbage etc.. seems like a good price for that high of a rent....(IMOpinion)

• 
  telemon10th January, 2004

  Seems like it is a break even deal at best. Maint is 400/month? Seems very high and I would assume this includes the condo fee.
  
  It's not a great deal to say the least, sounds like you might get a little positve cash flow. But for a long term rental hold, it's ok, just ok.
  
  The types of properties you should buy really depends on the area you are in. I always suggest really examining the area before jumping in. Condo's may be fine, just be confident BEFORE you make the purchase.
  
  [addsig]

• 
  gilford10th January, 2004

  Thanks for the reply. The $403 includes the association fee. The area is developing. There are stores moving in the neighborhood. For example the Macy's department store just finished a huge renovation. Stores like Starbuck just moved in the area along with banks such as Washington Mutual. This tells me that the neighborhood is developing and this seems like the best time to buy.
  The Bronx, NY which is where these condo's are located is 15 from midtown Manhatten, NY where the rent prices are anywhere from 1500 to 2000 for a 1 bedroom. I am really looking longterm with these purchases.
  
  Any other comments will be greatly appreciated.

• 
  MikeWood10th January, 2004

  [quote]
  On 2004-01-09 21:36, gilford wrote:
  Today we put a good faith deposit on a 1 bedroom Condo. This will be our first investment property. The comps are as follows: (bear with me i am new at this)
  price 65,000
  Taxes 500/year
  Maint. 403/month
  In the area the rents are 800 to 850. Once we upgrade the kitchen (current one is from 70's) we could probably get more rent.
  
  Just trying to run a few numbers here assuming you could finance 100% at a great rate
  
  65000 15 yr. @ 7% 584.35
  maint & condo fees 403.00
  taxes 500/12 41.67
  
  1029.02 going out each month and that doesn't include insurance, fix up costs and any other hidden costs. Unless the condo is worth a whole lot more than you are paying for it, I do not see this as a good investment and only then if you are going to resell it quickly.
  
  [ Edited by MikeWood on Date 01/10/2004 ][ Edited by MikeWood on Date 01/10/2004 ]

• 
  gilford10th January, 2004

  My thoughts were to get a 30yr loan. Hold the property and rent it out. As I said earlier, the neighborhood is developing and after renovating the kitchen and bathroom (5,000K) I could sell it if I choose to. A condo in the same area is going for around $70,000. I could easily get $900 to $950 once we renovate the kitchen. As far as hidden fees, ?. I am paying association fees, which includes trash, cleanup, repairs etc. I take all responses very seriously because this will be my first investment and I am still learning. I certainly want a positive cash flow with each investment and I feel it is possible with this purchase. But again I am new and any light that anyone can shine on this I am grateful.

• 
  DaveT10th January, 2004

  gilford,
  
  I think your question is in the wrong forum.
  
  Come to the Landlord Forum. Several topics there cover rental property cash flow analysis, and, would seem to answer your question.
  
  Do a search in the Landlord Forum for keywords like "DCR" and "NOI". This should pinpoint the topics that directly relate to your question.

• 
  gilford10th January, 2004

  Thanks Mr. DaveT
  
  I will certainly try the Landlord forum as you suggested. Thank you everyone for your input.