Potential First Deal

[Kevin Wood]

Hi all! Long time reader and first time poster. Beginning the process of my very first purchase with my partner in the Houston area. We are looking at several properties, but one in particular we are interested in. Note that we are just speccing this deal and so I am including all the information I have at this time. We will do more due diligence and look at finance options as we move forward.

Specs:

Property: 2 condos at $110,000 in Harris County Texas

Rent for 1560

Taxes 2640 a year

530 a month HOA/Condo fees (includes outdoor maintenance/insurance)

100 a month maintenance fees

Known Financing Options:

Cash for 20% of PP and 6.5% interest on loan for balance

Plan for Property:

Rent for a year or less then allow for rent to own and hold the note. This is what our mentor does and seems to work well in our area.

My obvious concerns here are that HOA fees are dangerous based on what I have read since you are not in control of them. Does anyone deal with these? How do you handle it? Is 6.5% a good interest rate? We are shopping banks, but haven't gotten many leads yet. This would be my partners and I first property. I know from listening to the podcasts that sometimes it's best to find something that works and get in the game rather than constantly digging for that perfect property. This was a deal brought to our mentor he likes and is passing on to us. Any other comments appreciated.