First time buying rental Property!!

7 Replies

Hi Friends,

This is my first post and I am not sure if I can ask this , but just giving it a try. Let me know if this is not appropriate.

We are looking at condos for rental property.  There is a  2 bed, 1 bath ( 1 level) condo at 150k and another 3 bed, 2 bath ( 3 levels) with garage at 250k . We don't know the rent we would get for the 2bed/1bth but we know for the  3bed, 2 bath we will get around $1500 .

 I would prefer to buy the $150k as the downpayment is less. However i am worried if this will rent out easily or not? Its closer to a company an a good school district.

Which one do you think would  be always occupied the 3 bed/2bath(3 levels)  or 2 bed/1 bath (1 level)

Thanks a ton!!

250k to rent for 1500... You won't make any money doing that and wouldn't recommend it. As for the 2 bed 1 ba I own 6 of these and am always able to find renters. I get the empty nesters and the young professionals. Both are demographics to rent to. Even still I'm not sure I would buy it. You need to research approx rent price first. Look at zillow, Craigslist, rentometer. In about 5 min you should have an idea. Because your looking at association the fees are really important to understand. If it would rent for 1400 or so with 225 or less in association then this deal is ok. If will rent for less or association is more than walk away as well

Thanks Travis for your reply!! I checked Zillow again.

 I mistyped as 250k sorry its 225k and it has an z- estimate around $1495 per month (however realtor is telling it will rent from $1600 -$1800) 

..for the 150k one, I see similar place with current renting list price is $1295.

Which one do you think is best option? Thanks again!!

based on the information you supplied, I would go for the 150k property. Spending  $75,000 extra to get $200 more rent a month isn't too appealing.  And take the realtors estimate for rent with a grain of salt.

As Travis said, find out the association fees.  they can make or break a deal

Thanks Tony!! Will check on the HOA fee...they have open house tomorrow!

Hi Travis/Tony,

Thanks for your patience!

Here is what I found out both 225k (3b/2bath) and 150k (2bed/1bath) are new construction condos...these are last of them so the builder has reached the quote for owners hence they are allowed to sell to investors. . I also found another house resale which they are selling for $229k

i found out renting price from current tenants and hoa price(its high!)  from similar layout renters, here are the details:

225k-> new built,  no appliances,   $276 hoa , rent $1600 ( the back side is on main road, there is noise)

229k -> 2007 built, appliances including ac, $276, rent $1600 (inside community)

150k -> new built, no appliances, $256, rent $1350 ( the back side is on main road, there is noise)

I am planning to put an offer for 150k with closing costs and appliances but considering the 229k old house  if the owner will be ready to sell for 220k + closing costs...

What would you advice? 

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