Updated almost 7 years ago on . Most recent reply
Should I Bet on Equity
Good morning BP community
I live in Oakland, Ca and have rental property here. This is an expensive market so a new investor has to be very discerning when looking for deals, especially if you are new to the business. My wife and I found have been presented with an opportunity to buy a 1Bed 1 bath condo for 270K. Because of a shortage of funds at the moment we would put 5% down and have a mortgage payment of about 2100/month. The rental market is hot in Oakland and this condo is in a decent area and doesn't need any real work. However, I don't think we could rent this place for more than 2100 to 2200 a month which would obviously be a small monthly profit but a profit none the less. If we can't get the rent we want we could also do air B&B for approximately 200 a night, if rented for half the month that would be 3K.
With all things considered we estimate the market continuing to grow in the coming next 2 years. I'd estimate this property could land around 400K in that time. That would be betting and I am not sure if this is something we should do. what do you all think?