Am I forgetting something? Idea seems fail proof.

[Christopher V.]

Hello all,

I'm looking at a potential purchase and would like your advice or second opinion. I feel like I may not be taking something into account.

Price: $300,000
Property Type: Condo
HOA Fees: $400/month
Property Taxes: $2,200/year
Home Owners Insurance: $800/year (estimated)
PMI: $133/month (estimated)

Estimated Monthly Payments all in: $2,109.00

My brother and I are considering purchasing this place simply because there are currently tenants in there renting for $2,050.00 per month through July 31, 2017. They want to extend their lease another two years according to the agent. In my head, we'd have someone living there for another 2 years and paying $49,200 of the mortgage while we pay the small difference. Add in our down payment of 10% and at the end of year 2 we have $79,200 in equity built into the place. We're thinking at that point we just sell it and take our small earnings.

That is not considering any kind of market appreciation. But I also know that's not accounting for any unforeseen market swings as well (say the market crashes, we can afford to hold onto the place for years to come).

Does anyone see any flaw in my logic? Also, does anyone have experience doing this (buying and holding with zero renovations)?

Thank you in advance,

Chris

[Account Closed]

You need to spend about a month reading this forum and get back to us then. Your question has left me speechless.