Seller Financed Condo Deal - Atlanta

[Amr Omar]

Hey guys, I've been looking at duplexes to house-hack in the area, but the owner of the condo that I'm currently renting is looking to sell and we've been negotiating on a possible purchase now. I know condos aren't the greatest investment because of the HOA fees, risk of special assessment and HOA fee increases, and because they don't appreciate too well. The attractive thing about this offer is it would be seller financed with a minimal down payment. The minimal down payment allows me to be able to still invest in a multi-family this coming year with 20% down, except both units would be rented out. Here's the deal: Purchase Price: 94k Down: 1k Monthly: 700 132 Payments Late Fee: 35 No Pre-Payment Penalties Due on Sale Clause Fully Furnished HOA: 249/mo Taxes: 656/annually Insurance: 350/annually (covers full price) Comp condo sold in September for 85k and another is pending now at 75k. I haven't factored in closing costs yet, but most of that will center around title transfer only. Current owner owns title free and clear, no existing mortgages or liens, no back taxes, and currently no insurance on the unit. HOA doesn't allow renting of the units. Only reason I'm able to rent now is because I'm renting a room and the unit is owner-occupied.

[Lonniel Ingram]

Hi @amr Omar. Are you considering buying the condo so you don't have to move? What do you plan on doing with the condo? Are you contemplating renting a room like the current owner? What are you paying in rent now for the room? From the numbers you would be paying about $1000 per month for expenses. So if your renting a room for $400-500 to cut your expenses then that is ideal. However, since the HOA doesn't allow rentals w/o owner occupied what's your ultimate exit strategy? If those are actual comps for the property, I don't see where you're getting value from this deal; you would be buying to high and you make your money when you buy not when you sell.

Lonniel