All Forum Posts by: Scott S.

Hmmmm that's a great point. I never even thought of that. I'll definitely check it out. Thanks again!

Thanks Kelvin. That's a question I ask myself all the time, but I keep coming back to real estate. I also feel passionate about real estate and I feel like it's a relatively safe investment in my area. I'm open to any ideas though. I just want to do the right thing for my family.

BTW I can't believe how addictive these forums are! My wife is getting upset that I'm on here all of they time. She thinks I'm obsessed...

Thanks Rich. I appreciate your thoughts. I actually don't mind the 2 bedroom situation. Most people that live in this condo community are young professionals or older and retired. Most tenants I've spoken to stay about 3 years or more. I just wish the numbers made a little more sense.

However, I don't understand how people on here buy properties so cheap. Maybe it's because I don't know enough about foreclosures and short sales. Property here in upstate NY is relatively cheap and stable, but I still can't find anything that wows me in terms of potential cash flow.

Thanks Tim. I also feel Luke warm about it, but my gut tells me it's safe for a first investment. However, when I lay out nearly $20k I'd like to feel like it's a no brainer.

My numbers include one month of vacancy and maintenance. I plan to self manage. By 1.5%, do you mean the rent should be a minimum of $1,050? Thanks.

Hi everyone,

My name is Scott and this is my first post on BP. First, I'd like to say how incredible this site is. I can't believe how much I've learned in the past few weeks just cruising through the forums. Thank you to everyone who contributes.

I'm 33 and my wife and I just had our first child. Working in sales with no pension, the thought of paying for my daughter's education seems overwhelming. I had this thought of buying an investment property for mostly a buy/hold strategy (a little cash flow would be great obviously).

I was initially looking at mf homes, but the amount of possible work, maintenance, and upkeep really scares me. So, I started looking into condos due to the fact that the hoa takes care of exterior maintenance. I know most of you don't agree with condo rentals, but let me know what you think of this.

The condo I would purchase is a 2br, 1 ba, 1050 sq ft, roughly $70k in a nice suburban neighborhood . Renters in this area generally seem to be responsible. Taxes are about $1500 per year. HOA fees are $200 per month. Liability insurance is only $150 per year. I'd put down 20% so my mortgage would be roughly $265. Rental income is going to be approx $925 . I spoke with the head of the hoa and they're very well funded. Special assessments are rare and the highest has been $19/month. They're currently 88% owner occupied and they keep a very close eye on that.

I used J Scott's rental analysis spreadsheet (awesome spreadsheet by the way) and it looks like I would bring in cash flow of about $2,500 per year and the tenant would be building about $1000 of equity per year. Is this a good investment? I know it doesn't fit the 50% or 2% rules, but it seems somewhat safe. My thought is this; I'm building equity that I can cash out in the future, not to mention the small extra cash flow, with minimal headaches or stress. My goal would be to buy a few of these over the next couple years.

As a newbie, I'd like to hear from you pros out there. Am I totally missing something or is this a reasonable low stress first investment? Let me know what you think. Thanks!