Looking to purchase a home that will also work as an investment in case plans change and I need or want to move.
Potential property:
1,000 sf, 2 bed/2 bath condo
Small condo complex in a nice quiet area, pet friendly.
High owner occupant rate (90%), no one is currently delinquent on condo fees
Needs cosmetic updates ~ 10k
$60k purchase price - $20k down + $10k improvements = $50k financed @ 4% for 30 yrs
family financing, no buying closing costs
Financing - $239/mo, $2,868 yr
Property Taxes - $100/mo, $1,200 yr
Insurance - $33/mo, $400 yr
Condo fees - $200/mo, $2,400 yr
Maintenance - $33/mo, $400 yr (interior only, exterior covered by condo fees)
Vacancy (1 month) - $62/mo, $750 yr
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Total - $667/mo, $8,004 yr
Rent for $750/mo, $9,000 yr (Realtor said $750-$800/mo, going with lower value)
When I plugged the numbers into the NY Times rent or buy calculator, it came back with a rental price of $684/mo, so buying appears better than renting, assuming the condo finances/reserves are in good shape (will investigate further). Not a stellar investment perhaps, but not horrible?
Any thoughts or advice?
Thanks!