Honestly, is this a good investment?

4 Replies

Hey, Is this a good investment? Buying a 25 year old condo in a B neighborhood and including rehab costs $63k (arv is $80k+), condo fees are $2280 annually ($190.00 per month), taxes are $2k, CCMUA is $1200 per year ($100 per month), insurance is $500 per year. Gross rent is $15600 per year ($1300 per month). Property is professionally and well managed. What are your thoughts on the overall investment as well as with cash vs. mortgage? Thanks

I'd run it through one of the BP calculators or your own calcs. At first glance $1,300 rent to $63,000 purchase price passes the 1% and 2% rule so it would probably cash flow. I'm not sure what CCMUA is. Unsure if renter or owner is paying condo fees, CCMUA, other expenses/ utilities, if condo fees include property mgmt., etc. Depends on your mortgage options and opportunity cost of what you'd use that cash on if you kept it. A mortgage without PMI might be a good option.

CCMUA is water/sewer. I would be paying all expenses listed.

gross annual rent minus all expenses with equal and that income of $9620 with no mortgage

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