What if i buy fully renovated no work needed condo

Question

Hello, i have enough cash to buy a clean no work needed condo with one bedroom fro 115k in colorado, i did the math and there is a possibility of 800 bucks cashflow after i pay HOA, PITI, im not thinking of getting a manager since its my first and i can take care of it. Im aware it would not appreciate much because its a condo. I will still have more money of about 200k to start BRRRR method as well?

Chris Davidson · Answer

@Sam Alkattan If you need to close quickly for the deal and it gets you started. I would do it. However, like others have said if you can finance some it will help leverage it out. Say you finance 50K you still have solid cash flow and now 250 left for another deal if you like how this one works out.

I think go for it. If you are holding long-term good chance condos will bounce back into being popular again.

Best of Luck!

I think go for it. If you are holding long-term good chance condos will bounce back into being popular again.

Best of Luck!

Aj Parikh · Answer

With the current trend in house buying, condos are not the 1st preference anymore. I would try to buy a SFH or a Multi family out of state

Andrew Syrios · Answer

If you get a great deal, you can still "BRRRR out". You just need to make sure the bank will refinance at appraised value and not the amount of cash you have into the property (which is true either way). With no rehab, they want a bit more of a seasoning period (how long it will be before they will refinance at appraised value) but either way, you're looking for a bank who will refinance at appraised value as soon as you can after acquiring. (We aim for a bank willing to do so after six months.)

Sam Alkattan · Answer

P.S i will have around 200k more in cash. And Colorado is expensive, i think for a bad shape home could be around 280k minimum

Peter Mckernan · Answer

@Sam Alkattan it depends on your goals on this situation, if you buy that one you'll be at the top of the market (because of the good condition), and if you are good with that along with looking for strictly cashflow on your first one this is it.

For the second ones, and moving forward future investments you can buy the rest at 20% putting in rehab to BRRRR them and continue that path for more opportunities with investments properties only in the $100K range. The theme is to make sure it makes sense for you on that first condo purchase.

Jason Shackleton · Answer

Hey @Sam Alkattan are you considering purchasing the condo all cash? If so I would consider putting less down and increasing your leverage and ROI. That will leave you more money for the next few BRRR deals.

What if i buy fully renovated no work needed condo

6 Replies