I was trying to purchase a 1BR condominium as an investment. Asking price $68K, taxes $3K and HOA is $305/monthly. Electric was included in the HOA, so just have to pay water and gas as utilities which can be passed down to the tenant to pay. Total monthly costs would be a little under $1000. Market price for a 1BR in my area is $1400. So there would of been potential for $400 profit for some passive income. Unfortunately the mortgage company we were working with doesn't do loans less than $100K. My question is, which banks or mortgage companies do loans for under $100K? I heard credit unions but haven't yet verified. Any help on this topic is greatly appreciated.
If taxes are $3k and HOA is $300/mo then how are monthly expenses only $100? You think you're going to be able to pass down the HOA onto the tenant? What about property insurance? That could be another $500-1000/yr.
I would talk to some large banks. I know Wells Fargo does loans <$100k.
Thank you for your comment. I will look into Wells Fargo or one of those big banks. Your right about the home owners insurance. Since I was intending on buying as an investment property and I'll be putting more than 20% downpayment, there's no PMI. Mortgage $300, taxes $300, HOA $300, Insurance $100= $1000. Tenent pays utilities.