Hello- My daughter is entering her second year of college and looking for off campus housing in DC. Studios close to campus rent for 1,600/month. There are condos for sale for 220,000 with 400 HOA fees. I am considering the option of purchasing instead of renting and keeping the condo as an investment after she graduates. With 20% down total monthly expenses (taxes, insurance HOA, P$I) payments would be approx. $1,500/month.
I have two questions for the community-
1-Do you have any general advice related to purchasing a condo versus rental related to making smart financial decisions?
2- For the downpayment (40,000)- I have 15,000 cash and for the rest a) I can get a HELOC on our existing home, b) cash out mutual funds or c) take an early withdraw from retirement savings and payback up to 30,000 with out penalty. Which is best?