Condo unit (rent or sell)

1 Reply

Here is a scenario that I am looking at:

1bd + Loft, 1ba 800 sqft, condo in a 12 unit, 3 level building.

It is an REO, listed @ $61,900. Needs about $5200 in repairs. Comps come in at about the $75,000 to $90,000 range. Average comparable rents are about $750/month. I figured that I could offer about $48,000 to make the deal work.

What do you think?

Where is it located? If it is an area that is a vacation destination I would lease it on a daily/weekly basis if it works. I have a condo in Austin that is worth about 100K and I lease it for $285 a day and it's leased out most of the time. That might be an option to explore. If the numbers are correct though and those are sold comps not active comps then I would probably take the cash and do a 1031 exchange into another property or two properties. Find out how many in the area, not just the complex are for lease and how many days on market before they are leased out.