Should I do a Condo for my First Investment?

[Bobby Paquette]

First Deal a Condo, Thoughts?

2 bedroom, 1 Bath 940sq ft. Right now it is on a 12 month Lease until January 2021 @ $850/mo (about 70$) below market rents in the area. HOA covers Water, Sewer, Cable, Trash, and Community area and Tenet Pays electricity. Numbers below:

Purchase Price: $70,000, Down payment: $14,000(20%)

Rent: $850/mo or $10,200/yr

Insurance: $1000/yr , Taxes: $2100/yr, HOA: $2500/yr, Mx/Mgmt/Vacancy/Capx: $1400 = $7,000/yr

$10,200 - $7,000 = $3,200/yr cash flow if kept at $850 rent.