Newbie who owns a condo wanting to turn into rental

Member since 2026 · 4 posts · 1 vote

I own a 2 bed 1 bath 904sqft condo in Tualatin or. I owe 99,000 with a assessment owning 35,000 mortgage is 953.00 and hoa is 783.00. Currents about 227,900 but one just closed today for 247,500. Should I make my first rental or sell. II want to be an investors and think this might be the way to start any advice would be great

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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
5mo
What will it rent for? That will be a key question.
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- David Mcswain
  OP
  Member since 2026 · 4 posts · 1 vote
  5mo
  @Chris Seveney hi Chris I believe it will rent anywhere between 1600-1850 in Tualatin
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Tim KaelinPro Member
Real Estate Agent · Portland, OR · Member since 2026 · 4 posts · 0 votes
5mo
Hi David,
The primary question is the net rental income compared to the monthly mortgage/HOA debt service. Your average 2 bed/1bath in Tualatin is renting for anywhere between $1500-1800. Your monthly mortgage/HOA debt service is $1736. Even if you were able to rent the unit for $1800, it's paramount that you keep a rough 25% contingency for capital expenditures and operational expenses. At $1800/month, with 25% for cap and op ex, your net is $1350, leading to a negative cash flow of nearly $400. It depends on your desired monthly cash flow, but the numbers here aren't terribly favorable. If it were my investment, I would move the equity in this property to a stronger investment. With this equity, you'd have about 20% down for a duplex with higher rental rates and a better cash on cash return. Feel free to shoot me a DM for more ideas!
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- David Mcswain
  OP
  Member since 2026 · 4 posts · 1 vote
  5mo
  @Tim Kaelin Hi Tim thank you for your response. I have a question if pulling equity would work to buy a duplex the issue is that would raise the mortgage on the condo which is counter productive right? I'm raising my own mortgage to buy an asset that I hope cash flows I guess I need to see how that work to understand better
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- David Mcswain
  OP
  Member since 2026 · 4 posts · 1 vote
  5mo
  @Tim Kaelin okay wait I think I might understand what you're saying. I should rent the condo at a loss but use the equity to buy a different rental am I correct with that thought. If I am how does renting at a loss benefit me or what benefits can I capitalize from owning a rental that's a loser?
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- Tim KaelinPro Member
  Real Estate Agent · Portland, OR · Member since 2026 · 4 posts · 0 votes
  5mo
  Quote from @David Mcswain:
  
  @Tim Kaelin okay wait I think I might understand what you're saying. I should rent the condo at a loss but use the equity to buy a different rental am I correct with that thought. If I am how does renting at a loss benefit me or what benefits can I capitalize from owning a rental that's a loser?
  
  Apologies if the initial answer was unclear! You would not retain the condo and rent it at a loss. You would sell the condo and move that equity into a stronger cash flowing asset. The equity in the condo is doing you no good as it is because the cash flow wouldn't be strong enough as a rental. Sell and capture the equity, use that capital to invest in a stronger cash flowing investment like a duplex.
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- Tim KaelinPro Member
  Real Estate Agent · Portland, OR · Member since 2026 · 4 posts · 0 votes
  5mo
  Quote from @David Mcswain:
  
  @Tim Kaelin okay wait I think I might understand what you're saying. I should rent the condo at a loss but use the equity to buy a different rental am I correct with that thought. If I am how does renting at a loss benefit me or what benefits can I capitalize from owning a rental that's a loser?
  What Masoud is suggesting is exactly what I am suggesting. I am currently in the process of doing something similar with a SFR that I own. I have about $75,000 of equity, however due to a negative cash flow on the rental income, I'll be selling the SFR and repositioning that equity in a stronger property. The equity is solid, the property is not a prime rental, so take your equity and start positively cash flowing in a better rental property.
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Janice Carter
Real Estate Broker · Atlanta · Member since 2024 · 1k+ posts · 606 votes
5mo
@David Mcswain Run the numbers first. With a $953 mortgage and $783 HOA, your monthly carry is already high. Will rent realistically cover that plus maintenance, vacancy and reserves? If not, it may not be a strong rental.
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Masoud ArouniPro Member
Investor · Pleasanton, CA · Member since 2026 · 119 posts · 52 votes
5mo
@David Mcswain let me make this simple for you.

At $1,700 rent (midpoint of your range) here's your real monthly picture:
- Rent: +$1,700
- Mortgage + HOA: −$1,736
- Vacancy at 8%: −$136
- Maintenance + CapEx reserve: −$150
- Property management at 8%: −$136
  Real monthly cashflow: -$485/m
That's not a rental — that's a liability with a tenant in it.

Tim's duplex idea has merit but his logic was backwards. You wouldn't rent the condo at a loss AND pull equity. You'd sell the condo, capture roughly $110–140k in equity after payoff, and redeploy that into a property that actually cash flows from day one.

The question isn't "how do I make this condo a rental." The question is "is this equity working hard enough here, or does it work harder somewhere else?" At −$458/month the answer is clear — sell, reposition, and buy right the first time.
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