All Forum Posts by: Sunny P.

I am particularly interested in hearing about success stories when it comes to condo investing.

there are a lot of you on this forum that have been very successful with condos but majority hate it.  

So tell me why you decided to go into condos?  what made you successful?  If you could do it again, would you buy condos again or go with other routes such as single family, multifamily, apartments, etc. 

Do you ever wonder how some of these guys get to that multi million dollar developments?  How do they have the money?  buying rentals here and there is great but these guys take it to a level that I can only dream of...just what does it take to get there?

Same thing I wonder about people that own multi million dollar businesses and when  you read about them, they came from nothing....what's that tipping point in their life that just allows them to take it to the next level?

I was browsing came across these developers in Columbus, OH

http://www.columbusceo.com/content/downloads/Leaderboards/2013/0513-real-estate.pdf

 What's hard money loan?

is there an easy calculation on how to figure out the tax savings or implications when selling the property??

Let's say you're paying cash $100,000 for a property. 

Each year you're going to write off your expenses, property taxes, AND DEPRECIATION. 

so that depreciation of $100,000- land cost will benefit you NOW and every year until you sell or 27.5 years. 

Then you pay taxes on that $100,000-land value. 

That's a hefty tax then.   So is that everyone's doing ?? Thanks 

 Really good points Sam and I completely agree that returns are better with financing.  Problem is they have a $169,000 offer from someone that wants to finance. So the only way they let this one go for $160,000 is if they close on it quick, which means cash offer. 

So I am not sure what to do but timing is everything here 

what are typical closing costs on a cash purchase for a condo? 

Thanks 

the reserves of this HOA are pretty strong...should there be a need for a new roof or some other major improvement, it should be covered.

I read through the condo docs and that is all they had about rental..no specific % restrictions.

Are you saying a decline in value because if there are too many investors then new primary residence buyer won't want to buy?  

I am wondering how much knowledge or curiosity does a new homeowner has about how many units are investor owned or not..

@Joseph Leonard are these potential costs that you would want to figure out ?  So the month doesn't necessarily incur these costs but at some point, have these reserves for new Windows, HVAC, water heater, new flooring, etc??? 

I did forget to include taxes in my original calculation. :( 

well the area is pretty hot.  I have owned 1 has been in rental for 5 yrs now (first tenant did 3 yrs and second has been there for 2 but starting 3rd year)

Second unit I have owned for 2 yrs..it got rented out within a week of listing and the 2 year lease ends on Friday and new one starts on Sunday.  

So far I've 0 vacancy but I don't know how that would work in the future. 

The rental market is particularly strong in this area and has been for as long as I followed the area for the last 15+ yrs. 

Their are 4-5 very large employers that employ thousands of young professionals and another 20-25 companies that are mid scale and also employ a ton of young professionals. 

My target tenant is that young professional before they buy their 1st house 

Okay, I know most of you are fairly negative on Condos, however, I want to ask you about this potential deal. Condo is in Columbus, high rents around $1500

Selling price/ final price is $160,000

HOA per month is $149. There are no restrictions on rentals from what I can tell and I called the HOA management company and the said the same thing. Basically the deed states any rental can't be for LESS than 30 days for transient use.

So I own 2 condos in this complex. Bought 1st for $150,000 in early 2009 and second for $140,000 in Mid 2014. When these were first built in 2007, they were selling for $165000 - 170,000

Now this unit that I am looking at is $160,000..Market has gotten very hot over the last year or so. This one was built in 2010 so it's a bit newer.

Current rent for the other units is around $1500

So with that in mind if this is purchased with cash, main expenses would be $150 a month for HOA; about $150 a month in reserve for incidents

so left over is $1500 - $300 = $1200 x 12 months = $14,400 / $160,000. That gives a 9.0% Cash on Cash return.

Only reason I like this is because I own 2 other units in this complex so it makes it a bit easy to manage..

Thoughts??