Does anyone invest in condos to hold
I'm thinking of buying a condo to hold. It is in a complex of buildings and has a total of about 200 units. It is desirable and I would think the rent amount puts it at a level of a luxury apartment community which makes since because it has similar amenities.
Is this a good deal?
Am I missing anything big?
Purchase: 93k
Closing cost: 3k
Minor prep: 3k
Total purchase: 99k
Monthly income $1295
Monthly expense:
Mortgage: $450
Tax: $200
HOA: $200
Insurance: $65
Vacancy/repair allowance: $130
Total cash flow: $250/month
I'm expecting total cash investment at $20k
Cash on cash: 15 percent
Two items: I am not including management expense because the reason this appeals to me is that it would be simple to manage myself. High rent folks with fewer issues and lawn/snow are taken care of by HOA
I'm also not including a lot for vacancy and repair. The unit will be renovated and made ready before placing a tenant and The HOA keeps a reserve for the exterior and has recently reroofed all the buildings.
Thoughts?