Author Topic: $92500 condo - Can rent for $1200 putting down %10  (Read 813 times)

BourbonSofia

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$92500 condo - Can rent for $1200 putting down %10
« on: October 11, 2019, 10:02:33 AM »
Hello All,

I currently rent a place for $900 per month. I found an apartment for sale for $92,500 - I can put %10 down. I can rent it for $1200 per month or live in it. Since my own rent still a bit cheaper, I want to rent it for a while and pay a bit extra on the loan. The area is not great and it's not up can coming.


Thank you for all your responses!
« Last Edit: October 11, 2019, 12:37:42 PM by BourbonSofia »

BourbonSofia

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Re: $92500 condo - Can rent for $1200 putting down %10
« Reply #1 on: October 11, 2019, 11:20:51 AM »
forgot to post the question :)  what do you guys think of the numbers $92500 rent for $1200 or would you just live in it? the area is not as good as where I am.
« Last Edit: October 11, 2019, 12:43:33 PM by BourbonSofia »

Papa bear

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Re: $92500 condo - Can rent for $1200 putting down %10
« Reply #2 on: October 11, 2019, 01:08:49 PM »
Need more info on this from the expense side.  What are taxes, insurance, and since itís a condo, HOA fees?  Also, checks covenants and restrictions on renting out units.  Some places have limits to the number of renters. 

Also, if you are buying this with the intent of renting it out, it would be considered an investment property.  Typically 20-25% down is necessary.  You can put less down if your intent is use as a primary residence. 

Can you buy it as your primary and then turn around to rent it? Yeah... but the intent needs to be there.  Fraud isnít something to mess with.  CYA on this.


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BourbonSofia

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Re: $92500 condo - Can rent for $1200 putting down %10
« Reply #3 on: October 11, 2019, 04:57:04 PM »
HOA $160 per month
NO restrictions on renting out units
20% down would be ok
I'll check into the fraud part of it since my lease will end in a year.

An interest rate of 3.7%




Papa bear

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Re: $92500 condo - Can rent for $1200 putting down %10
« Reply #4 on: October 13, 2019, 07:40:23 AM »
Ok, still donít have the full story here. There are a lot of other expenses to still take into account here, namely taxes and any deferred maintenance.

Off of your numbers so far, this isnít a terrible rental, it will probably cash flow a bit if you manage it yourself and handle maintenance and repairs.  It would not be one I would look at, though, as a more professional landlord.

The biggest question you have to ask yourself is, do you want to be a landlord?  Itís not passive work, there will be some stress and hands on work.  And living that close to a tenant, some people hate it, some people like it.  Think about that as well.




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