Investing in Condos?
Hi all,
I've recently purchased myself a condo (2bed 2bath 1200sqft) in Roswell that was priced under 25k to what similar condos in the community are going for albeit they are fixed up a bit more (new paint, appliances, etc.). It's in a well established community with what seem to be happy residents. I checked with the HOA which is around 285/month and they do allow up to 20% of the condos to be rented out which is currently at 50% capacity.
With a 3% down payment w/ seller paying most of the closing costs, and at a 3% interest rate, I felt like this was a good deal. My monthly payment with everything included would be just shy of 1300. Given the area it's in I would bet a fair price to rent the unit out would be around 1500 a month. So a monthly cash-flow of around 200, with a ConC return of around 37%. Also, I plan to live in this unit for a year or 2 with a roommate paying around 650/month excluding utilities.
I'm aware of some of the issues around HOAs and how you're practically at it's mercy, but with one that is well established, I imagine any radical changes would be unlikely. At first I did not want to invest in any property that had an HOA, but for someone who is looking to remain closer to the metro Atlanta area finding those units without an HOA is very difficult. Also, ones that I have found tend to be in not as nice of an area. If any of you have some experience with investing in condos or town-homes, please share.