Please tell me what you think about this deal

Please tell me what you think about this deal

Rental Property Investor · New York, NY · Member since 2011 · 956 posts · 510 votes

It's a condo for $122,000 in a class A area.

rents for $1700 a month. HOA fees are $810 a month ,plus taxes are $225 a month .

if i put 20% down, the expenses will be covered ,

but if i have a vacancy i will be out alot that month. 

it makes the 2%rule but not after the HOA fees..

Feedback  very much appreciated!

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Rental Property Investor · Phoenix/Lima, Arizona/OH · Member since 2012 · 4k+ posts · 4k+ votes
11y

Run away as fast as you can ;)

See this reply in the discussion

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  • Rental Property Investor · Phoenix/Lima, Arizona/OH · Member since 2012 · 4k+ posts · 4k+ votes
    11y

    Run away as fast as you can ;)

  • Contractor · Temple, TX · Member since 2014 · 379 posts · 164 votes
    11y

    I second what @Ben Leybovich said!!

  • OH · Member since 2014 · 454 posts · 227 votes
    11y

    @Marci Stein 

    Do the HOA fees include daily massages, chef prepared meals, a personal trainer, dry cleaning??

    If so, STILL RUN!

     :-)

  • Rental Property Investor · New York, NY · Member since 2011 · 956 posts · 510 votes
    11y

    I love this feedback---thanks guys :)

  • Investor/Accountant/Builder · Meno, OK · Member since 2014 · 1k+ posts · 918 votes
    11y

    @Marci Stein 

    I would run as well, but I would like to know what 2% rule you are talking about.

    Even without the HOA dues $1700 rent is not that close to 2% of purchase price. After HOA the rate is .7%

  • Rental Property Investor · New York, NY · Member since 2011 · 956 posts · 510 votes
    11y

    Arlan-you are right. I was thinking if i bought the place at 100,000 instead of 122,000 it will meet the 2% rule -or come pretty close. (that is before the hoa fees.)

  • Rental Property Investor · Yardley, PA · Member since 2008 · 1k+ posts · 561 votes
    11y

    If it were not for those HOA fees, it would work. I too wonder, what does the $810/month buy?

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