Buying a Condo for a Rental

[Tyler Walker]

So, I came across a nice deal on a condo. My plan is to add it to our rental fleet (wow, that sounds big - but the fleet is really small so far).

3bd, 1.5 bath with basement and back yard (property is included and is not part of any condo ownership). Front is two parking spaces.

Quick numbers: $35k price with no owner financing available, $1000 in repairs (mostly paint and a couple light fixtures), $60/yr in condo fees (only for mowing a field where there are no condos). All maint in owner responsibility, inside and outside. Insurance $500/yr and taxes are $800/yr. I estimate ARV at $60k, but others have sold higher in past years. Rent would bring in $800. The area is in a suburb and is decent.

The dollars look good - but wanted to throw it out here in forum land for comments. I have not done a condo yet. I do have the owner getting a copy of the HOA rules, but there are renters in other units, which was my main concern.

My next step is to find a private lender that does longer hold properties rather than an HML that wants a 12 month deal.

Thanks,

Tyler