All Forum Posts by: D.J. M.

@Matt Davis it depends, due diligence (DD) on the front end is key. Take a look at the rules to see if they are basic or overly invasive. Find out what the assessments have been in the past, have they remained steady? Look at the association’s financials, do they have sufficient cap exp reserves which would reduce the likelihood of a sudden increase/special assessment. What is the association responsible for as far as common areas, amenities, services, insurance? Condo association fees are usually higher than homeowner’s/neighborhoods because there generally are more common areas/responsibilities. A few more DD areas, does the board have a lot of turnover, any prior or current litigation, and reputation of the management company. Talk to residents if you can, real estate agents typically also have a good sense of good HOAs.

@Pope Lake you pay cash for a property. Then you go to a lender and they give you a mortgage, which allows you to get your “cash out.”

@Tim McKinnon get 3-4 quotes. But know that the trades are in HIGH demand, and there aren’t enough trades to keep up= higher prices.

@Kyleigh Morgan if the LLC is just formed—yes it's harder. Your rate will also be higher. Also remember—if you buy in cash hoping to renovate and refi, if the market turns—it may be harder to get a refi so your capital will be tied up, form relationships with a variety of lenders.

@Wendy Lee you’d likely not break even, and may be losing each month.

@Kyleigh Morgan 2 philosophies exist, buy under your name for the benefit of easier and better financing, utilize insurance for general liability OR form and buy as LLC, harder to get traditional financing, rate will likely be higher and shorter term, but you may have some protections.

Not legal advice, consider consulting an attorney.

@Sadie Bynum sounds like it was priced using the lower square feet.

@David Medina at least one foot has to be grounded before you take the next step. Investing is a commitment mentally and physically. Additionally you don’t want to take the risk of getting a property with a mortgage only to have to leave your job. Try to make your current work situation better or start looking for a new job, once you are in a better place, take the next step to invest.

@Brianne Leichliter there is no single metric, you first have to figure out your goal(s) what you hope to accomplish with this deal—from there you can better understand how this deal can serve as a vehicle to reach your end goal.

@Ernes Sahic while meeting the tenants may help you glean some information, it won’t be much, and could put you in jeopardy of fair housing violation(s), seeing their unit and the ledger for on-time payments, looking over original application and current lease, checking for police calls for service will yield much better insight, unless you see signs of an extremely bad situation, tenants are probably fine.