Buying a condo in Alaska

[Kai Sato-Franks]

Hello!

My girlfriend and I are currently in Fairbanks, AK while she finishes up her Master’s degree. We are planing to move out of the AK for a while and come back in time.

We recently got approved for a grant that covers our down payment and the seller agreed to pay our closing costs. So we paid $400 for the inspection for our condo and there’s just cosmetics we need to fix and an update of appliances in time. They just replaced the roof, windows, and HVAC, two years ago. Due to the Covid-19 we haven’t been able to move in yet.

We plan on living it in and fixing the cosmetics and adding the appliances for a year or two.

I'm new to real estate investing and have read about how bad and sometimes good HOA fees can be.

I used the BP calculator for rent and we'd only get about a 5% ROI.

The thing is with us only paying $400 upfront, does that make this a good deal, but only short term?

Our HOA fees is $550 a month. We'll be paying around $1,200 + electric ($70-100) a month. The property was priced at $130,000 and we didn't negotiate and just paid in full because we were uneducated about real estate unfortunately.

2 bed 1 bath with upstairs and downstairs with small fenced yard in a “B”class neighborhood.