Deciding what should i do with my first investment property
Hey guys If you were me which would you choose:
Option #1 : 5bed/3bath condo
-Morgage payment $2917 monthly
- Hoa $620 monthly
Home warranty insurance $100 monthly
Total : 3637 monthly
-Condo bought at $660k as a 3 bed 3 bath and now added to extra bed rooms
- I Will wait 2 years to sell i have no idea what the property is worth yet so im waiting until then
Option 2 : Rent upstairs , 3bed 2 bath for $2300. Rent down stairs 2 bed 1 bath $1800 both have separate entrances and kitchens
Total : $4100
Pay morgage $2917
Minus $620 hoa monthly
Brings us to :$563 left for cash flow
Will move soon property manager charges %10 of each unit
10% percent of 2300 upstairs =$230
10% percent of 1800 downstairs = $180
In total : $230+$180=410
Subtracting from cash flow for property manager and insurance will be $53 cash flow
No property manger and mangage over seas : $463 cash flow
Any advice ?thank you in advance !! 🙏🏾
As soon as you mentioned it was a $600K condo I was pressing the "sell" button, HARD.
At the end I saw it was Hawaii. I have some friends that endure negative cash flow from renting out their single family homes, in the event they want to move back. That, however, is not a business decision, it is a personal decision. I would only keep it if you are in very good financial condition and can swing the negative cash flow AND handle unexpected repairs.
Quote from @Greg Scott:
As soon as you mentioned it was a $600K condo I was pressing the "sell" button, HARD.
At the end I saw it was Hawaii. I have some friends that endure negative cash flow from renting out their single family homes, in the event they want to move back. That, however, is not a business decision, it is a personal decision. I would only keep it if you are in very good financial condition and can swing the negative cash flow AND handle unexpected repairs.
Im hoping to have a few more rental properties so i can be more comfortable in renting iut out and everything using a property manager
