What do you think about this deal?

[Sunny P.]

Okay, I know most of you are fairly negative on Condos, however, I want to ask you about this potential deal. Condo is in Columbus, high rents around $1500

Selling price/ final price is $160,000

HOA per month is $149. There are no restrictions on rentals from what I can tell and I called the HOA management company and the said the same thing. Basically the deed states any rental can't be for LESS than 30 days for transient use.

So I own 2 condos in this complex. Bought 1st for $150,000 in early 2009 and second for $140,000 in Mid 2014. When these were first built in 2007, they were selling for $165000 - 170,000

Now this unit that I am looking at is $160,000..Market has gotten very hot over the last year or so. This one was built in 2010 so it's a bit newer.

Current rent for the other units is around $1500

So with that in mind if this is purchased with cash, main expenses would be $150 a month for HOA; about $150 a month in reserve for incidents

so left over is $1500 - $300 = $1200 x 12 months = $14,400 / $160,000. That gives a 9.0% Cash on Cash return.

Only reason I like this is because I own 2 other units in this complex so it makes it a bit easy to manage..

Thoughts??