Advise on Buy and Hold rental numbers in Benicia CA

[Sharon Wang]

Hi - this is my first post on BP. I've been seriously contemplating purchasing this 2bd/1ba condo in Benicia. Purchase would be at $170k, given price of other condos in the East Bay Area, I feel this is a pretty good deal. I would put 50k down and borrow 120k at 4.1% for 30 year fixed. In the end I would net about $73 / month. Looking at the numbers would you consider this an ok investment, with the intention to sell within 5 - 7 years? This would be a bet on appreciation as just 5 years ago, this same condo sold for less than 70k. Any advise would be greatly appreciated.

Thank you,

Sharon

Monthly Rent	$1,450.00
Property Tax	$175.00
Insurance	--
Property Mgmt (6%)	$87.00
Mortgage	$580.00
HOA	$410.00
Vacancy (5%)	$62.50
Repairs (5%)	$62.50
TOTAL EXPENSES / MONTH	$1,377.00
NET	$73.00