I'd like to get some opinions on a condo deal, which I know few of you recommend. I'm active duty military stationed in Norfolk with plans to move back to the west coast in about a year and a half. I'd like to purchase something in the market here because it is much more affordable. Here's the deal in which I would owner occupy for about a year.
It's a 65000 condo that only requires 5% down. HOAs are $230.
PITI+HOA = about $670/mo
Current rents in that area range from 900-950. This unit has been updated so I'm shooting for the 950.
After a management company charges about 10%, that will leave me with $180 which definitely isn't much to work with. At closing with down payment and some closing cost assistance I'm only in it about $7k.
Would anyone recommend this due to the low initial investment, or pass it up and wait for something better?
Are there extra fees for maintenance? The condo association may have their own requirements, or the PM may charge extra. It sounds but like the PM is not identified yet, so 10% may not be the standard. And many will charge a fee on top for any maintenance.
How is vacancy in the rest of the building? Are you accounting for about one month of vacancy per year?
Just some questions to consider, as that will absolutely come in to play somehow against your cost flow. Otherwise I think investing near certain military bases can be a good idea, such as Norfolk.
Yes condo fees include maintenance, water, and sewer.
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