Condo pro-forma

[Justin Vincent]

I'm looking at acquiring a condo for the convenience of having a place close to work that I can rent out in the short term future (3-5 years.) I have a back of the envelope pro-forma analysis in excel that I use when doing a numbers-based first look at properties. What kind of Taxes and Insurance (+Condo Fees) can I expect as compared to SFH's? I can get a pretty accurate estimate of the PI on the loan. My concern is that the taxing and insurance is different. I've read that insurance isn't typically required, as the hazard is assumed in the condo fees. HO-6?? Any insights in how to estimate my direct PITI cost would be great. I currently use a percentage of the appraised value of the property for my TI cost when I do back of the envelope calc's on homes.
As I get further into the process I will typically call my insurance agent and look up the tax levies/millage rate in that area. But I want to know if I should expect something different up front that could change my approach to what properties I entertain purchasing.

Thanks a bunch,
JV

[Dion DePaoli]

Property taxes can be found on line at your county tax authority.

Association dues can vary so you should look to this listing, agent, seller or call the association for the right number.

Insurance in condos can also vary from property to property and associations. This depends on the areas and structures each party (association or owner) needs to insure. It is common for many associations to insure all the property and structures along with the common areas. The owner would the be responsible for their portion of the property not covered by the association. Many times you can simplify the idea by thinking the owner insures from the drywall inward and the association goes outward. That is not always the case, so do inquire about the owner liability with the association or their documents. As such, those owner policies are pretty inexpensive since the association covers the expensive stuff. An owner policy like that will look like a glorified renters policy but a little more expensive. The most certain way is call an insurance agent for a quote.