1 bedroom condo , worth it or not ?

Question

Nicole A. · Answer

How much are the monthly condo fees? To get a conservative number, you need to add that into your monthly costs. Insurance, taxes, repairs, vacancy, utilities, everything. Be absolutely sure that this is a cash-flowing deal. Don't underestimate monthly costs to make yourself like the numbers better.

You won't know if you can get the loan until you try. So start talking to banks. Small, local banks. Talk to them in person. Talk to several. Assuming you need 25% down, you'll have $7500 cash after the deal if you have the seller pay all closing costs. You can do it!

Jason Little · Answer

It is basically impossible to get a conventional mortgage in the current lending environment without proof of income.

Most loan programs don't even care if you have the cash to buy the property outright, if you cannot show proof of future expected income then traditional lenders are not viable.

Finding a private lender who believes in you as an individual, the research you put in, and the plan you present to consistently create income through the property may be your best solution at this time.

That is a dangerous proposition though, and I urge you to take the up most caution dealing with private lenders, research and double check everyone.

I wish I could help you with conventional lending avenues, but unfortunately until you can document your income, your options are limited.

Alex Deacon · Answer

@Faysal Alam Step one always have your pre approval or proof of funds ready at all times. If you are paying cash have the most recent statement from your account. If you haven't done this yet then the seller will most likely not even look at your offer. Talk with a professional in the mortgage industry to get a solid pre approval or guidance on what you need to do to get qualified. As far as is it a good investment

1. What would be Your Principal interest taxes and insurance payment each month.

2.  Use a management fee even if you are going to self manage at least put something in here 5-10%

3. Use a repair contingency my guess $100 a month would be sufficient since its a condo

4. Use a vacancy factor 4-8%

At the end of the month what is your cash flow? Is that acceptable to you?

If you cant get a conventional loan you have a couple options. Seller financing where the seller will hold a mortgage and or a lease Option.

OR

Private money (Hard Money Loan) where you pay a high interest rate until you can refinance into a conventional mortgage.