Condo Deal Analysis

[Leo C.]

Yes I know, general sentiment is don't invest in condos. Look at the numbers anyway and see if it makes much sense,

SS in progress 120k [will go no higher]
Closing, say 5k
HOA fee, 250/month [master insurance and exterior]
Taxes at 170/month
Rental comp reliably at 1250-1350; relatively good market, will attract A class tenants.

Investor mortgage 4% 10 yr balloon, amortized over 30yrs, P & I, 430/month.

This unit would sell at 140k (+/-5k variation max) if marketed in the MLS. At the height of the market it might have gone for 180k, most believe this area is at the bottom and will go up again, so some appreciation might happen.

Not certain how this would exit, if it's rented, it's hard to sell while rented. If it's held to re-list, then the holding cost wipes out any gains.

The numbers just don't scream any sort of short term profitability. See any angles where this might be a good deal?