So excite! I think this might be a decent deal for first rental

[Chad C.]

Condo in a good area, surrounded by nice homes.

55k house, ( buy at 50k, finance 40k) $191 PI, $46 Taxes. Insurance paid by HOA.

135 hoa, 68 management.68 vacancies, 68 for repairs. 680 rent,

191

46

135

68

68

68

-------

576

-680

104 cash flow

3540 per year cash flow if I pay cash. 7% ROI

If mortgage- 40k @4%, with a down payment of 10k

ROR on 10k in the form of principal for first year is 6.4% increasing about a percent each year for the duration of the 30 year loan. adding a 1% for the $100 cash flow.

would this be ok to get my feet wet?

Thank you!

[Shawn Devoid]

I can't judge whether your deal is a good one for you, but I'm surprised your insurance is covered by the HOA. I own a condo & there is insurance carried by the HOA for the outside of the structure, but I still need to carry my own insurance (per my mortgage) for the INSIDE. Additionally, it has to be Landlord insurance, since I rent it out. Have you actually talked to a lender about this particular property yet? If not, you may be in for a surprise. If a condo association has too many rentals, as opposed to owner-occupiers, it may be difficult to obtain the financing you desire.

Something else I've run into, is neighbors that make the life of the tenant miserable.  Where basically nobody could live there, because they constantly harass the tenant.  I know, weird, but it happens.  I would never purchase a condo again, but that's just me.  I'd save more, to buy more, or look for a partner first.