Buying condo with HOA concerns
I'm very close to purchasing a condo in Austin Tx that would meet the 1% rule. I can purchase the condo at 95k and rent in the area is around 950 so it seems like a solid investment. However, the HOA for the condo is 245 monthly and this would make the condo cash flow negative for me.
I was planning on purchasing the condo to live in as a primary residence for a few years before moving to a house and renting the condo out. Now, I'm not sure whether this is a good investment or not. There aren't too many other condos in my price range at this time.
Background...this is my first purchase. I've been renting and am ready to get into a place that I own. This condo is in North Austin/Round Rock and I'm told will probably not appreciate very much over time. It's also a non-warrantable condo as the units in the complex are primarily owned by investors who rent the units out. I guess my confusion is that it doesn't seem like an overwhelmingly profitable investment due to the HOA but there are still investors snatching them up?