Investing in my first condo

[Mark Perkins]

Hi everyone, I'm located in Connecticut and I was contacted about a condo for sale and I'm wondering what's steps I should take to protect myself from a bad investment. The owners family is willing to do a lease option....I need some advice, other than the generic beware of HOA, fees, etc.

[Mario B.]

Run the numbers, do they work. Aim for 10% return or higher. Do you have extra cash in the bank to reno it, does it even need reno. What will it rent for, what are your monthly expenses, how much are you making after everything is paid off, what are the taxes. Who's managing it, do you have to hire a property manager? What are HOA fees. Is there a parking space, is it covered, secured? How much does the condo association have in reserves. Are they planning any upcoming updates that will assess a charge (my condo just decided to re-do cat walks and rear driveway, costing me $120 a month for the next 5 years). How are the neighbors, ask around, what are they paying. Check recent condo sales, are you getting it under market value, at market rate, or above. Make sure you have a good lawyer, I use http://www.landlordlawfirm.com/ in Milford, CT. Make sure you have an amazing lease that covers as much as possible.