Hey Guys!! New to the site!
I'm from Chicago looking to dive into the real estate market... I currently own and live in a foreclosed condo that I got for dirt cheap... I currently pay $380 per month for my mortgage but could easily rent this out for $900-1100 for my area.
I was thinking about trying to do the same thing with other foreclosed condos in my area... is this is a smart idea or could 20k be spent better else where?
@Thomas McNicholas - What are your HOA fees?
Because of high HOA fees here and rules and regulations on renting condos I personally avoid them like the plague.
I agree with @Brie Schmidt : I don't like condos either because of the high HOA fees. Having said that, it's all about the numbers. If the numbers make sense, sure. You can use my Cashflow Analyzer that I uploaded in BP Marketplace. Here's the link:
Thanks for the replies
@Thomas McNicholas welcome to biggerpockets
HOA fees do kill the numbers on a large percentage of condos. Many of them wouldn't be worth it for investing if you were given the unit for free. However, if you can find a market where the HOA are manageable and the numbers make sense, then condos can be a lot less headache than SFH. The exterior of the property is 100% managed and maintained. You only have to worry about things going wrong within the unit itself. Plus, they are very cheap to insure. Don't dismiss them outright, but make sure you know the numbers and always read the decs and by laws before you buy.