New Investor Looking for Insight on Condo Investing
Hi Everyone,
I'm new to the BP community. I've been studying up on MFRE and SFR investing, analyzing deals I'm finding, and just want to get some feedback on a couple of items. There is a group of 6 condos for sale. They were built 10-11 years ago, the builder still owns them, and has been renting them out. I believe they are asking way too much ($600k+). I think they are hurting for cash, since they didn't complete building the rest of the development (empty lots). There are about 25 condos that have been sold in the development.
I’m trying to figure out if it’s worth trying to invest in condos. I’m looking for some insight on the following items:
- Is there too much risk of special assessments or increases in association dues to invest in condos? I budgeted for $50/yr per unit, current assoc dues are $125/mo per unit.
- How much deferred maintenance/repairs should be in the budget considering association dues cover all common parts? I budgeted $100/year per unit.
- What to budget for general cleaning/prep/updates? I budgeted for $75/year per unit.
- I’m looking for a 20% cash on cash return year 1, based on my analysis, my offer would be $364,000.