Hello everyone, hope everyone is doing well! I'm a rookie investor and was proposed a deal to purchase a townhome roughly 10 minutes from UNC Charlotte. The lender/bank and the builder are offering to cover my closing costs and down payment.
The value of the property according to the realtor is $320,000. They are willing to submit an offer for $305,000 for me so I'd have instant equity of $15,000 if what the realtor said is true about the value of the property. My mortgage plus HOA would be $2300 a month.
The issue is that I plan on relocating to a different state within a year and so I'd have to put a tenant in it. I have to hold the property for three years before selling according to the realtor.
I will have to hire a property manager to handle this property because I will in a different state a year from now.
Hello everyone, hope everyone is doing well! I'm a rookie investor and was proposed a deal to purchase a townhome roughly 10 minutes from UNC Charlotte. The lender/bank and the builder are offering to cover my closing costs and down payment.
The value of the property according to the realtor is $320,000. They are willing to submit an offer for $305,000 for me so I'd have instant equity of $15,000 if what the realtor said is true about the value of the property. My mortgage plus HOA would be $2300 a month.
The issue is that I plan on relocating to a different state within a year and so I'd have to put a tenant in it. I have to hold the property for three years before selling according to the realtor.
I will have to hire a property manager to handle this property because I will in a different state a year from now.
Is this a good investment?
I'd slow down on this one. The "instant equity" sounds nice, but what really matters is whether it cash flows once you move out, and at $2,300/month plus HOA and management, that's a high bar to clear. New builds near universities can rent well, but if the rent doesn't comfortably cover your full payment and expenses, you're basically banking on appreciation while being locked in for three years. That's a tough position for a first deal, especially going out-of-state. A lot of investors are starting to look toward Midwest markets instead, where you can buy at lower price points and actually have rent cover everything with some cushion, which makes holding way less stressful. If the numbers don't clearly work as a rental today, it's probably not the deal you want to learn on.