Condo Advice... sell or keep?

10 Replies

First off, newbie investor and still have a lot to learn. Took a big leap of faith last year and bought a condo...

I really need some advice on this condo:

I owe 60K on it for the mortgage now. Payment is $722 a month. HOA is $330 a month. My tenant pays $1100 and wants to renew lease. I'm basically making less than $100 cashflow on it. Tenant just told me today that he wants to renew the lease.

Should I not renew the lease and sell or should I keep? If I sell, I'm thinking I can 1031 exchange what's left after the mortgage payoff and realtor fees and reinvest profits into something better like a duplex or triplex with no HOA.

Lesson I learned here is no more HOAs. They also prevented me from turning this to a short term rental.

Hi @Shivam Kashan

The cashflow is really not that great, blame it on the HOA.

And it seems the average market rate is 1145/Month in Daytona Beach area. So you are not really charging more than the market average. This renewal is your chance to increase the rent a little bit if you can.

Why don't you try refinancing since the rates are low now so that your monthly cost comes down a little bit. These are just ideas.. I would defer to experts and wait for their input. Just be positive. I personally avoid condos just for the HOA.



If the tenant wants to renew then I might be obliged to keep renting it. That's pretty low cash flow. HOA will really eat up your bottom line. Sounds like your already a little above market rate.

Do you have a good idea of what the property would be worth if you sell it?  Do you have another property in mind that you would purchase with the proceeds?

@Shivam Kashan . How much of your payment goes to mortgage pay down. I know folks don't consider that cash flow but it is a forced savings. How much will it cost you to sell the condo and how much will it cost you to buy a new property, especially if you are financing. I would suggest keeping this unit and each time you get a tenant offer to sell to them. I own five condo's and I don't think the HOA fees are all that bad in you have good management and they have enough money in reserve If you didn't have a mortgage then your cash flow would be great. You are stuck in the middle between the bank and the HOA. You probably pay the bank more that you pay the HOA. I make @ 12% on my condo investments I make less on my SFH because of all the maintenance cost, higher insurance cost, and higher taxes. Plus I get a gym, pool, tennis court, etc, to use when I want with the condo's. I can get plenty of exercise with my SFH's like climbing ladder, pushing mower, digging up and replacing plants, etc. condo's are way less maintenance is my point. Being a landlord for a few SFH is a full time job. Being a landlord for a few condo's is much easier.

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