Quote from @Matthew Allen:
Hello,
So I bought a condo here a year ago when I moved down, and now it looks like I'm most likely going to have to move soon. I think I could rent it out and even if I hire a management company still breakeven or make enough to pay the mortgage/escrow (taxes, insurance, etc.). However, my HOA fee is stupidly high (not low when I bought but raised $110/month since then) and would put me underwater somewhere between 3-500 a month I think. I would be able to afford this as basically a bill on top of my rent whenever I move (because my rent would most likely be cheaper and salary same or higher). In my head, at least half of this loss is basically a savings account since it will go towards my principal. But otherwise, I estimate I need 2-3% appreciation annually to justify taking this hit.
My dilemma is that I still feel like the property will appreciate and I don't really want to be out of the game completely, but also doesn't seem like I'll realistically be able to rent out for a profit right now, even if I did it myself without a manager. It is located in Montrose and it's on the top floor of a mid-rise with views of downtown from the balcony and living room. So I feel that the location is very good and not unlikely to grow further. Think I've thought through most of the logistics but mainly asking this question to see if there's anything I might not be thinking of or see if anyone else here has experienced something similar and what you did?
Thanks!
Hi there Matthew,
There are a few questions you may what to consider. Can you manage a single unit yourself? One unit isn't much to manage if you have automated systems and local professionals in place. Being that your association fee increase, did their service or coverage increase? Specifically will they now cover some of the expenses you paid before the increase such as internet, utilities, major damage coverage etc.? Is the increased fee a decrease in your expenses, may be worth it or not. Consider your loan terms will it cost you more now to buy now or was your purchase upside down to begin with? What are the projected rents? Is there a value feature that allows you to charge a bit more for your unit that for Above all, trust your intuition, if you sense you should stay in the game stay and make it work! Hope this helps.
