Is buying a Buying a condo a good idea?

[Arsiema Berhane]

Hello,

My parents are renting a one bedroom apartment and they pay $1500 a month. Is it a good idea to buy one and rent it out to them? $165,000 with condo fee 479. Am not expecting profit here. Your advice and suggestions are highly appreciated. Thanks.

[Stone Jin]

Are you going to rent it to them at $1500?  If so then you will cashflow a little bit depending on how much you put down.  Let's say you rent it to them at your cost.  You still get the depreciation and appreciation and amortization aspects of real estate.  Seems like a no brainer to me.  

You would have to run the numbers on opportunity cost though.  Can you invest the capital and then subsidize their rent with the profit etc etc etc.