All Forum Posts by: Account Closed

Thanks everyone for your replies!

Just to keep you posted:

- I have to put down 20% $31k which lowers my mortgage and the monthly expenses come out to about $1350. Lender stated this is required since it's a second home in the state of FL - they have this requirement for FL and Nevada.

- I am negotiating with the seller the following:

155k, all closing costs paid by seller, and extra parking space, close by June 30.

The extra parking currently generates $100/monthly.

Monthly income $1400

Monthly expenses $1350

The cash flow is negligible borderline neutral but I really do want this place for its location on the intracoastal and in such a beautiful neighborhood.

Btw the report states my income to expense ratio is .90% (rule 2%).

How is that calculated and what does that mean?

Thanks all for your replies. I guess if this was a cash purchase, it would be good. I was so caught up with my coworkers hype that I wanted in on a piece of that. I probably wouldn't vacation there as I need rental income.

The reason I'm looking at a REI in West Palm Beach FL, is that I hope to move there permanently in 10 years (various reasons, weather/beach/calmer lifestyle and cost of housing). We figured if we purchase a home that we love, rent it out, pay extra on monthly mortgage we could move there in 10 yrs mortgage free, take time finding jobs etc.

I can neither buy nor let alone REI locally as I live in the DC metro area which is extremely unaffordable in terms of real estate. Since I commute to DC for work, any homes near or around a metro station costs an arm and a leg. The townhomes in my neighborhood (22180) sell for $650-700k! I researched and for a good neighborhood close to the metro and TH, I'm looking at $450-550k.

Below are two viewpoint (one is risk taking and one is risk adverse). Please let me know which one is better in terms of building wealth and also having a nice home.

1. My viewpoint: Buy something now to build cash flow and ROI later. Even if cash flow is minimal or awash, bank on ROI and sell when value appreciates.

2. My husband viewpoint: Save for 10 years and pay for a home in cash. I worry about this one because with the markets appreciating so much, I'm afraid in 10 years I will not be able to afford any homes with the $300k that I would have saved.

I want to get our foots in real estate so that we are not shell shocked by homes in West Palm Beach selling for double in 10 yrs. Do you think this is a valid concern or if 1 or 2 makes more sense?

Hi everyone! I am so thrilled I found this forum because my husband and I can't decide if we should take the risk with a potentially really great investment out of state. Some more info:

This property is located in the Bay Reach condominium community in West Palm Beach, FL (I live in Va). It is not on listing as the seller is a for sell by owner, and wants to avoid realtor fees. I heard about this deal from my coworker who has several units in the same community (he's making great money! But he also bought his units for $40k-$150k about 3-5 years ago at the housing crash). Seller is asking $155k, she bought it in 2005 for $250k. HOA fees is $350/month. Tax: $1400/yr. Insurance: $900/yr. Listing fee equals one months rent (I don't live in the area so I would need to hire a realtor to rent out the unit).

The condo can be rented for $1300/month. Highly desirable neighborhood with good renters and little vacancy.

Here's my question:

Do I purchase it in anticipation of the rising market and value appreciation? My coworker said I should buy now for $155k because the values are increasing since all the foreclosures have been sold and renovated. A unit similar to this one (same complex) is listed for $170k. Attached is the photo of the report calculator that I found. It shows a net loss of $1-2k for the first few years. Should I purchase this property in spite of the minimal initial loss in anticipation that I can sell it for a huge profit? My coworker said at the height, the property was valued to $350k.

The seller wants an answer by next week as she urgently needs to sell and if I do not act quickly, she must list it (~$175k).

Please help me! I am losing sleep over this (it's 2am yikes).