Rock Hill, SC · Member since 2016 · 2 posts · 1 vote
Hi all, this is my first post here. I've been saving some money and would like to get started with REI, renting to be specific.
Here is a quick outline of my finances. I live in a nice affordable condo community, average price of a 2b/2b is $75,000-80,000. I currently owe $67,xxx on my unit and have $15k saved up. I'm also paying $77 PMI and HOA fees are $105 per month.
I'm trying to figure out the best way to utilize my savings. Should I try to buy another unit for $75k and rent it out, use my savings to put down 20% and eliminate my PMI with a refi on my own unit or maybe some combination of both?
I know $15k is not a lot to work with but you gotta start somewhere. Any advice or suggestions appreciated. Thanks!
The first thing you should do is run the numbers. How much do condos in your area rent for? Who are you going to rent to? Will your rental produce positive cash flow? Once you answer these questions you can make an informed decision.
As a general note, I have found that it is very difficult to use a condo as a rental and have it produce solid, positive cash flow. I would try looking for other types of properties in the area first. You may be pleasantly surprised.