North Hollywood, CA · Member since 2016 · 66 posts · 4 votes
Hi Guys,
I am really worried if I am making the right decision. This would be my first buy and I am planning on living in the property for a number of years (less than 5), but my concerns are the current owner does not want to do any work to the property. He is not even willing to budge from the asking price of $190k, the property is based in North Hollywood. In the same complex other similar properties a few months ago with better conditions sold for $180k. I think I would need to invest $10-15k (estimate) to get it up to scratch. It is a one bed condo with low HOA. The inspector said there was only minor things that need to be fixed (like curvature in the bathroom wall due to moisture hitting it, main door warn out, appliances are really old, tiles are cracked, uneven paint job, moisture in the cabinet below the sink, some electrical units wiring needs to be fixed as the hot is on the right, etc etc), but no major problems. I have attached pics and please let me know if I am making the right decision.
Lender · Las Vegas, NV · Member since 2015 · 2k+ posts · 1k+ votes
9y
if it's overpriced ...pass...I would also be very careful about the extent of the water damage in the bathroom from water hitting the wall . This easily turn into a money pit.
North Hollywood, CA · Member since 2016 · 66 posts · 4 votes
9y
Charlie, thank you for the reply. The inspector said the curvature on the wall in the bathroom was caused due to people taking hot showers and them not opening the window or putting on the fan.
North Hollywood, CA · Member since 2016 · 66 posts · 4 votes
9y
the inspector also mentioned the celling in the bathroom did have a leak but the HOA said they fixed it. The inspector said it looks like the joyce has some moisture when he used a special tool, but due to no ventilation it cannot escape but he said it shouldn't be a problem.
I was looking into this place because I currently pay $1200 month now in rent and if i get this it will cost me with everything $1400 month. When I looked into using Brendon calculator for rental, it shows I would be breaking even. The only way I can make money cash flow in rental is if rent in the area goes up in the next few years or from equity (after 3-5 years living there) price in the area from sale goes up.
Also a 2 bedroom in the same complex in July 2016 went for $250k.
North Hollywood, CA · Member since 2016 · 66 posts · 4 votes
9y
Also I do not know how easily it will be to sell a one bed condo in the next few years, which is another concern for me. Like would I need to continue renting and breaking even or falling short a $100 every month
Investor · Seattle, WA · Member since 2016 · 73 posts · 37 votes
9y
@Account Closed It sounds to me like you are not ready to purchase this property. You don't know what you want and you don't know if this is a good deal. My advise for you would be to go back to basics:
1. Figure out what you want
What kind of property do you want? 1-bd/2-bd? Do you want a condo?
Do you want to buy it for cash flow or for appreciation?
Do you plan to live in it or not?
How long do you plan to hold it?
2. Once you know what your goals are, study the market. Get to the point where you can look at a property and tell whether it's overpriced, underpriced or priced at market. You should also know how much you can get in rent for it.
3. Once you've done 1 and 2, you'll be ready to buy.
Real Estate Agent · Garden City, NY · Member since 2016 · 3k+ posts · 1k+ votes
9y
I agree it's overpriced.
Not sure why a joist would be wet from the shower. Something else is going on back there. If the bathroom was not properly vented, you would get mold, maybe peeling wall paper. Not warped Sheetrock and wet joist.
A wet ceiling joist means water penetration from the structure that is running unchecked.
Bowed out Sheetrock means the board was wet from inside the wall and is pulling away from the structure.
Sheetrock and paint are cheap, but a wet joist means something else is happening that can be expensive.
If a nicer unit went for less money you need to get the price down based on condition/repair needs or walk....
North Hollywood, CA · Member since 2016 · 66 posts · 4 votes
9y
Hi Stan K.
My goal was to avoid paying rent of $1200 which is dead money. I want to get a place but don't want to get ripped off. My plan is to get a place, stay there for some years, then either rent it out or sell it, im happy to at least break even, just don't want to lose money.
Wholesaler · North Hollywood, CA · Member since 2016 · 72 posts · 31 votes
9y
it doesn't look like a good investment. You can continue to look for a house or condo if you are trying to avoid paying rent. Talk to realtors in the area to let you know when a good deal comes there way. Be patient