Author Topic: Wanted to see if this condo would be wise to purchase...  (Read 1051 times)

FuckRx

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Wanted to see if this condo would be wise to purchase...
« on: January 31, 2015, 10:08:16 PM »
I'm currently renting for about 825/mo and paying about 100/mo in utilities not including internet. I will be staying in this town (Portland) for at least another 4-5 years. I love the location but I don't mind moving. The rent around here is around 875-925/mo so I got a decent deal.

So the apartment that was brought to my attention hasn't gone on the market yet, gonna sell for about $140,000. The HOA's are in the 160 range. The taxes last year were I think 1750, I don't remember these numbers in detail. The unit is a little under 400sqft and is a 1br1ba. Has a washer dryer etc.

Anyway, I did some math on it and I think it will come out a little under the rent I'm paying since I would get to deduct a wee bit of the taxes and mortgage interest. I'm not sure how much realtor fees etc are gonna set me back. Would appreciate thoughts on this.
« Last Edit: February 01, 2015, 09:13:25 AM by FuckRx »

Rezdent

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Re: Wanted to see if this condo would be vise to purchase...
« Reply #1 on: February 01, 2015, 09:08:42 AM »

Hi FuckRx. ..I'm thinking there's a Freudian slip in your title that reveals what your inner doc is feeling, no? :)

If only planning to stay 4-5 years you might come out ahead renting, especially if you would sell it then.  Selling costs could easily exceed a small monthly advantage, so look carefully at the math.

If not planning to sell later and rent it out, the place should meet or exceed the 1% and 50% rules for a rental.  There's lots of info on these rules in the Real Estate section.

And here's my personal bias:  I can't stand condos or HOAS and will not purchase one.  These put the owner at the mercy of a collective who can change fees or decide to do a special assessment for unnecessary upgrades or overly inflated repairs.  Or perhaps they refuse to do needed repairs - just as bad.  They also often have rules that prevent or limit owners from renting.   I cant stand them.  YMMV.

FuckRx

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Re: Wanted to see if this condo would be wise to purchase...
« Reply #2 on: February 01, 2015, 09:15:17 AM »
haha, good one. ok changed the title :) thanks for the info.

Dicey

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Re: Wanted to see if this condo would be wise to purchase...
« Reply #3 on: February 01, 2015, 08:27:15 PM »
Meh, I don't hate HOA's. A well-managed one ensures that the places are kept up, which protects your investment. I recommend getting on the board or at least attending meetings so you know what's going on. You're in Portland, so this may be less of a concern if your location is hot, but I'd prefer a 2+1 over a one BR unit for easier rental and better resale value.
If you're planning on staying or don't mind keeping it as a rental, and the building is in good shape in a nice area, my vote is yes. Be sure to do your due dilligence on the health of the HOA. Request and read all the minutes and financials for the last 24 months or more if possible. Make sure the reserves are fully funded.