All Forum Posts by: Parm Kahlon

I'm intending to live in the new condo and ultimately fix it up a bit and rent it out or sell it later down the road.

About the commission: I was talking about that for the current condo that I'm selling, and that I didn't take that into account when I was going over what I thought I would pocket from selling the current condo.

Hi, my name is Parm, I'm looking into investing (in Bakersfield, CA area) by reading forums, books, and listening to podcasts. I was confused in the beginning on where to start but after finding Biggerpockets I feel like it has put me on the right path. 

I wanted to get some opinions and advice regarding my first deal. 

Currently, I own a one bedroom condo in Bakersfield, CA. I bought it at $104K, + closing costs + renovation = we are about $120k into it. It is currently in escrow at a selling price of $138k. 
I'm looking at a new condo (2 bedroom 2 bathroom, $195k) around the same area as the current condo. I am currently in escrow for this condo with the accepted offer of $191k + closing costs with 20% down + 5% commision. I initially thought I'd be getting $8K as profit from the sale of my current condo, but I didn't think about the closing costs on the new condo. Now it's looking like I'm just going to break even.

My question: Is it worth selling my current 1 bedroom condo and buying the new condo with nothing out of pocket (what I'm currently thinking of doing), OR should I not buy the other condo and hold on to the current condo in order to either sell or rent it down the road. Both have their pros and cons but from a financial point of view, what is the better decision, in your opinion?

I'd love to hear your responses and your reasoning. Thank you in advance for the advice and help, I appreciate it.