All Forum Posts by: Deonte Hill

@Deonte Hill

Investing in a condo may be a wise move, provided that it fits within your financial plan and investing objectives. Taking into account the possibility of an equity gain from renovations and upgrades, keep the following in mind:

Market Conditions: Depending on the state of the local market, changes such as bathroom and kitchen renovations may or may not have an influence on a condo's equity. Renovations may have a major influence on the property's value in some locations while having less of an effect in others.

Comparable Sales: To estimate the possible value gain from improvements, look for recent comparable sales (comps) in the neighborhood. Seek for condominiums with comparable renovations and evaluate the impact these upgrades have had on the selling prices of those properties.

Rental Demand: While renovations might increase a condo's appeal to prospective tenants, especially in the Section 8 leasing market, it's important to assess if the cost of the improvements can be recovered by the anticipated rental revenue. To comprehend local rental prices, vacancy rates, and rental demand, do in-depth market research.

Cash-Out Refinance Strategy: Renovations that increase the property's value can potentially provide you with equity that you can tap into through a cash-out refinance. This additional capital can then be used to acquire another investment property or for other investment purposes.

Cost Considerations: Before proceeding with renovations, carefully evaluate the cost of updates relative to the potential increase in property value and rental income. Consider working with contractors or renovation specialists to obtain accurate cost estimates and assess the feasibility of your renovation plans within your budget constraints.

Risk Mitigation: Keep in mind that renovations come with risks, including cost overruns, project delays, and unforeseen complications. It's essential to budget for contingencies and plan accordingly to minimize potential setbacks.

Ultimately, whether updates like kitchen and bathroom renovations will significantly impact the equity of a condo depends on various factors, including market conditions, rental demand, and the cost-effectiveness of the renovations. Conduct thorough due diligence and consider seeking guidance from local real estate professionals to make informed investment decisions.

@Deonte Hill

Will this be your primary residence? 

Do you already have a primary home? If not I'd consider doing an FHA purchase. As depending on your info you can purchase a $300,000 home with 3.5% down. This is $10,500. Then you would have realtor fees and closing costs. Depending on the situation you may find a quad as well that would effectively let you use 75% of the rental income from the 3 units you don't occupy. You may also find down payment assistance. It's all in finding out what you can do. The extra income from the extra units might allow you to do more than break even in saving some of the cash flow you would usually have to put out.

Are you looking to owner occupy the home or have it be a rental property? There are different loan options depending on the occupancy type.