All Forum Posts by: Petro P.

Looking to purchase a few $50K-100K condos as rental property. I was told by a mortgage broker that I will have to make sure the Apartment Complex has less than 15% of the HOA Fees unpaid, and less than 40% of apartments can be rentals (60% owner occupied).

This criteria may be fine for some places, but what if one of the doesn't meet this criteria? Aren't there any other type of loans for these units? This would be with 75-80 LTV.

So I guess if you have your financing in order and can show them you mean business they may still go for it.

Couldn't you also buy it cash if it was a good deal and just get a loan on it afterwards?

Looking to purchase a few $50K-$100K apartments to rent out and slowly build a portfolio here in South Florida. I see many listings stating "cash only", does that mean I can't get a loan to purchase these apartments? I was planning on using $100K and purchase as many as I can with 20% down.

I dont see why they care if they get cash from me, or a bank.

The Condos could rent for $900-1000/month and the house for about $1800-2100/month.

So far I have come up with this:

HOUSE:
+ Tenants usually stay longer.
+ Tenants may be more responsible, family people.
+ Might not have a HOA to deal with.
- Repairs could be more costly (roof, driveway, etc)
- Larger mortgage to pay while not rented.
- Putting all my eggs in one basket.

CONDO:
+ More affordable to get into.
+ Smaller mortgage to pay if not rented.
+ Minimal repairs (no outside repairs)
+ Can purchase more of them for the price of one house.

I've lived in both Condos and Houses and I hate dealing with the Condo's HOA, so I'm leaning towards the House. It's just that in order to accumulate a few properties over the next couple of years it would take 3-4 times the cash vs condos.

I want to take $100k of my money to start getting into real estate investing. The goal is long term, to accumulate a few properties, have tenants pay the mortgage, and eventually sell for a good profit (5-10 years)

Here in South Florida i can buy a decent 2/2 condo for about $60k-$80k, so with 25% down i could get about 3 of them and make about $100/month each or so. Or i could buy 1 decent single family home for about $250k and make $200-300/month.

I cant figure out which would be best. Condos have the HOA to deal with vs the house may not have a HOA. But the house could have larger repairs in the future.

Any advice?