40k cash for a 1br1ba 680ft condo

6 Replies

Hello,

Can you all give me some advice if this is worth it? The condo is on the 1st floor and is tiled, includes fridge, washer, and dryer. 

Yearly:

Purchase cash: 40,000 (basically my whole savings)

HOA: 2700 (includes Comcast cable)

tax: 720

rent: -9600

profit: 6180

Thank you for your inputs!

What are the comparables for the same size in that area?  Are you going to live in it or rent it out?

Hello, I will be renting out. The surrounding area rents for 650-900 a month. I also found another deal that may be better than this one. I did not include a miscellaneous cost in my first estimate but I will add it in this one to have 'cushion.' It is listed for 23k but I will try to get it for 20k and do about 5k of upgrades(paint,floors,appliances). I can rent it out or sell for 40-46k. I saw one sold for 42k in January 2015. This deal would free up more cash for another potential deal. What y'all think?

purchase 20000

hoa -2700

tax -660

misc -1000

rent +9600

yearly +5240

Why all cash? Is getting a mortgage an issue? If not, why not employ some leverage, cut the net income half, but have cash on the sidelines for regencies and other opportunities. Don't use the net income to live off of. Continue to accurate for the next deal.
Why all cash? Is getting a mortgage an issue? If not, why not employ some leverage, cut the net income half, but have cash on the sidelines for emergencies and other opportunities. Don't use the net income to live off of. Continue to accumulate for the next deal.

These owner sellers are only interested in cash sales. I think it will take too long to get a mortgage and it is such a small loan amount. I also don't know how it works to get multiple mortgages for multiple homes. I need to look further into that.

You can always open a line of credit or cash out refi to open up liquidity lost deal. I just always her nervous when someone says "pretty much all my savings" is necessary to get a deal done.

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