1st Rental with negative cash flow
Looking for advice, recently used Va Loan to buy a condo 2 years ago for 440,000 at a 6.25%. Total monthly cost with HOA was 3,330.
seeing the rates drop I refinanced to a 5% and dropped my monthly cost to 2,955 + HOA of 350. Totaling 3,350. I have to move due to work and contacted a couple property mangers who estimated we could rent it around 2900. making it a neg cash flow each month. It's in a really nice neighborhood l, gated amenities and everything.
I was wondering if anyone else has been in a similar the situation, recommendation on tips, and overall advice or general direction that a similar person has gone to come out on top?
Most Popular Reply
#5 All Forums Contributor
- Honolulu, HI
Especially being a Condo/HOA property, unless you are VERY well versed in the finances of the project, you should just sell. There are too many ways for the Condo Board to really wreck your cash flow and any safety net you might have. Their Reserve Funding Plan is critical, you must fully understand it, AND be comfortable that the numbers are even accurate.
As a retired former PM and Managing Agent for numerous projects over many years, trust me on this...