Real Estate Agent · Chantilly, VA · Member since 2016 · 245 posts · 61 votes
I'm in the Atlanta market looking for a rental deal.
I found a condominium for $98,000.
If I can get away with 5% down, 30 year fixed, interest rate at 4.461% and including $800 yearly home insurance, taxes, PMI and etc, my monthly mortgage is approximately $674.
It'll be $633 if 10%
Rent estimate is around $1,000 a month
I'll have them pay for all the bills.
1) If I buy this, can I the bills under their name or do I have to monthly send them the bills and tell them to pay it?
2) I know there might be HOA fees?
3) I'll my due diligence in terms of getting an inspection and making sure everything is up to par but what am I missing? Why isn't this is a good deal considering I'll add the HOA fees into their rent and so let's say the HOA fees are $200 a month, I'll ask for $1,200 a month.
Any criticism will be great.
Thank you :)
Real Estate Broker · Temecula, CA · Member since 2014 · 992 posts · 782 votes
9y
Most tenants pay their own utilities. They need to set them up in their own name. The listing agent can tell you if there is an HOA. They should know this. If the rent estimate is $1000, you wont be able to just change $1200 because there is an HOA. The place will rent for the market rent for the area. You cant just charge 20% more and expect to get nice, well qualified tenants.
So keep digging to make sure this is the complex for you.
Go on zillow and see how many condos there are, Also check the HOA documents to see how much reserves they have for new roofs, common areas, how old is the pool, etc. Condos can assess all the owners for major renovations, if they dont have enough in reserves.
Check how old the water heater, AC, heater, and roof are.
Durham, NC · Member since 2013 · 502 posts · 215 votes
9y
How certain are you that you can get these mortgage terms for an investment condo? Those condos are the hardest to mortgage and a 25 to 30% down payment is customary. Even then, your actual rental income is $800. You pay the HOA fee. I have a hard time considering the condo a viable deal. Run the rental calculator on BP with realistic assumptions.