All Forum Posts by: Ciro LoCascio

Thank you for that advice. I am reconsidering the deal and I'll try to get a better number. HOA has only raise their fees $25 in the pass 7 yrs. The area is up kept really well. Regarding the mortgage that's actually a great idea. Possible do a 5 yr mortgage with even a 30yr amortization and than refi after. Thanks again for all the great feedback. If anyone has experience on condos please chime in

Hey Adam thanks for the reply. Your correct I forgot about insurance which is a total of $1008 annually for all 5 condos. The reason I only calculated 10% is cause the HOA takes care of all exteriors also including HVAC units. I will only be responsible for the interior. Giving it some additional thought it would probably be better to stay away from this deal. Also tenants pays all utilities. Would the 50% rule still apply to condos?

Hey Adam thanks for the reply. Your correct I forgot about insurance which is a total of $1008 annually for all 5 condos. The reason I only calculated 10% is cause the HOA takes care of all exteriors also including HVAC units. I will only be responsible for the interior. Giving it some additional thought it would probably be better to stay away from this deal.

Hey Guys I need everyone's opinion as I am just a couple weeks away from signing a contract on 5x condos, four are 2 bd and 2ba and one is 1bd and 1ba. The price I got him down to is $45,500 each for 2bd and $38k for the one bed room. Totaling $220k. This investment would be my two brothers and I. Downpayment is 25k each, total $75k and receiving a private family loan for the remaining $145k at 2.5% either 15yrs for $1079 monthly payments or 20yrs at $885 monthly payments. Which would be either $12,948 or $10,620 annually. Each unit is rented currently for $750 and the one bedroom for $600. Annually $43,200. Rent is on the low side of the market currently. Expenses would be HOA fees at $146 monthly and $108 monthly for the one bedroom, totaling $8304 annually. Taxes are $600 annually and $400 for the one bedroom, totaling $2800 yearly. I am also calculating 1 month vacancy at an annually total of $3600 and 10% maintenance repairs at a total of $4320 annually. So if we went with the 15yr mortgage it would look like this $43,200-$31,972 expenses +mortgage = $11,228 profit. Divided by 3 is $3,743 each annually and $312 cash flow monthly. Or if we did the 20 yr mortgage it would look like this $43,200- $29,644= $13,556 divided by 3= $4519 each annually and $372 monthly cash flow each. What do you guys think of the deal altogether and if it's even a good deal would I go with the 15 or 20 yr mortgage. Please advise and thanks ahead of time of anyone's input. If you believe price is too high where should I be to have this deal make sense. Thanks

Any inputs? Thanks

It would be a cash deal and not many condos have sold recently so I wanted to get an idea on value.

I am looking into purchasing a condo and all looks well but I want to get the condo appraised. Can I ask the seller to split the cost?

It is highly recommended that you form the LLC in the state where the property is.

Another option I have is putting down $25k each for a total of $75k and we will net $2650-mortgage($700)=$1950 total and it would be split in 3, so $650 each month cash flow for a $25k cash investment. That's $7800 a year on $25k investment.

Your right, my calculations are a little off. The net income without mortgage would be $2650 divided into 3 would be $884 a piece and my mortgage payment would be $672, it would be private lending at only 2.5% and would be considered a cash deal to the seller. It would cash flow for me, $212 monthly