Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Real Estate Deal Analysis & Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 5 years ago on . Most recent reply

User Stats

40
Posts
2
Votes
Ava G.
  • Singapore, Singapore
2
Votes |
40
Posts

My not-so-good experience buying my first rental property (condo)

Ava G.
  • Singapore, Singapore
Posted

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $70,000

Cash invested: $30,000

First rental property I bought was a condominium from a good property developer in the Philippines. Still bought despite all the red flags (yup, from BP members!). Nothing wrong with the property/developer itself. Just that the Philippines has very high loan interest rates (due to high inflation) and the monthly rentals are not enough to cover the mortgage + assoc. dues. The property is not cash flowing although it seems to be appreciating in value. Last resort is to sell and start over.

What made you interested in investing in this type of deal?

There are more people renting condos than landed houses due to poor commuting conditions. Expats also cannot buy their own homes and are likely to rent condos. It's also in a good location.

How did you finance this deal?

Through bank financing at 80% of the purchase price.

Lessons learned? Challenges?

1. I underestimated the 'misc.' costs that have to come out of my own pocket. About $11,000 was used, not for the actual price of the property, but for renovation, furniture, closing costs, holding fees, etc. If I don't make it cash flow soon, my expenses will just balloon over time.
2. I didn't research the rental rates properly and had a too optimistic estimate. As per BP, a good rental rate is 1-2% of the purchase price. However, my unit can only be rented for 0.6% or lower.
3. Shouldn't over-renovate.

Loading replies...