Condo Purchase

[Kyle Kolberg]

Good Afternoon Folks,

I am in a stick situation and could use advice. I am making my first real estate purchase. I came across a property in Milwaukee Wisconsin. The property was listed at 149k, and then was dropped to 139k. I made an offer at 121k which has just been countered at 127k. There is a tenant right now that lives in the property and is willing to keep renting for 1.2k. The problem is, I got pre qualified for a residential loan, so I wouldn't be able to keep renting to him. If this were the case, I would have been at about $150 cashflow monthly after taxes, HOA and utilities. With a higher loan, I'm not sure if this would be worth it. My thought was to live in the property for 12 months and rent out after, but now I have learned that you need to get condo approval to rent out your property - I'm not sure what that is like. (This is all not taking in consideration tax benefits as well).

Please advise in anyway as I am quite green in the real estate realm!

Thank you!

[Chris T.]

@Kyle Kolberg

I would stay away. I'm not sure what the ARV is of this condo, plus what kind of work is needed.

But it's a lot of hoops to jump through to get very minimum equity. Especially when you have to deal with the HOA and your loan.

Most investors stay away from properties with HOA as rentals for this very reason. But some have been successful at it.