What the heck am I doing?

[Joel Rodriguez]

This is not a deal I made, but my cousin's deal, which I followed very close and made me think: What the heck am I doing?

- Nov/2013 Tairy (Cousin) decides to buy her first place, she got pre-approved for $150.000 FHA Loan.

- By Feb/2014 after seeing a lot of ugly houses and apartments we found a 2/2 apartment, in a good area (very close to Miami Lakes in Miami NW), recently rehab, in a condo that had 2 similar units for sale for $130.000 this was nicer, cleaner, and $90.000

- The deal was conventional only, so we found our way to get the down payment money (thank you family) and she closed in Mar/2014, $20.000 down, $8.000 closing fees and $70.000 mortgage.

- She end up paying $570 a month plus $300 Association, water include.

- The rent of one unit like hers at that moment was between $1.200-$1.400.

What the heck am I doing? I have to do this, I though. At the end of the day she was saving some cash, has her own place, and she was putting money in her pocket with every mortgage payment.

So it looks like a pretty good deal to me, even though, I knew it was a very superficial analysis.

What do you Think?

[Jerry W.]

It is worth looking into. Be careful of HOA rules they may prohibit renting or may put limits on how many units can be rented. You might also consider looking at a duplex instead. Good luck