I saved up about $20k for my first investment in the southeast WA region. I was originally searching for duplexes but was unable to get one in my area. The duplexes had 6 to 7 offers on them the day of and were really hard to pin down. Since then, I have readjusted my strategy and looked at other options. This week a riverfront condo came on the market for $135K...the duplexes I was looking at were running about $200K.
I did some research and found that this particular condo was sold for $105K in 2013. So that is a $30K jump in the last three years. My thought now is to buy the condo and live in it myself (it is newly updated/renovated. In great shape). Then, look to rent it out within the next year.
My general thought is that even if I break even with it as a rental for a few years, it seems that riverview property is going up and would appreciate in my current market. I also wouldn't mind having this long term because the view is great. Any thoughts feedback would be greatly appreciated! Cheers!
Check the current rents for a similar unit like yours, AND double check with the association in regards to rentals. Some associations have restrictions so you don't want to surprised.
And more importantly check the comps. With a view, your unit should be appraised for more than 1 that is not. So make sure the comps reflect that. How many units in that condo have a view and how many don't? How about other surrounding condos in the area with a view, have you checked those out as well?
Lastly, run the numbers on the BP rental calculator so you can get a better idea of cash flow if you do decide to rent out. MAKE SURE you budget more for CAPEX - because most HOA have special assessments from time to time.
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