To buy or not to buy?
Hey BP! Need help making a decision:
Bought a condo across the street from a university in Tennessee mainly for my daughter to live in and "house hack" in the fall semester.
We listed it for Summer Lease Only and have gotten about 10 inquiries, all but 1 wanting a years lease and every single person that we have had contact with asked if we would let them know if we have anything else open up there (I guess they are assuming we are a big company).
In the mean time an identical condo has come up for sale in the same building. Which would require minor "make ready" repairs and could be ready by May 1 for rent.
Won't bore you will ALL the numbers, but the first condo was a cash purchase. Cash flow = $550/mo after HOA, Tax, Ins, CapEx, repairs, and PM (we are self-managing, but want to include this for later). Did not figure vacancy...I know...I know...but two other owners (from the HOA board) said they both have waiting lists for their condos.
To buy the 2nd condo, we would take out a small mortgage on both, ending up with approx. $200 cashflow from each. To cope with some initial vacancy during the "make ready" we are able to pay PITI and expenses from our day jobs without killing ourselves if needed for a time.
Seems pretty good, BUT my reservations are:
-- We would be making less cashflow with the two, have twice the potential headaches and have to worry about getting two sets of tennants.
-- We would own two condos in the same building. IF a special assessment came, we would be on the hook for twice the assessment.
Would appreciate any advice!