first deal pls advise

2 Replies

Hi

this is going to be my first deal - so hell nervous, any inputs highly appreciated.

planning to buy a 2 bedroom 2 bath condo - seller listed for $120k offered $100k and $3k closing costs.

would rent for $1000-$1100.

Southern ca is not so great in cash flow, however this will cash flow me up to $100 per month.

piti $550

hoa $250

rep & vacany $100

Is this deal worth? Should I be looking into SFR however, SFR in the area go upto $200-$250k and rent would be $1300-$1500.

I m not anticipating any appreciation, plainly cash flow.

IMO $100 cash flow is a little low maybe with the down payment money you have look into a multi family which well cash flow a little better and be easier on you when vacancies arrive. Hope this helps!

I would really thin about it. I would make sure you know what other condos in the immediate area rent for. And really look at the rental record  and read the agreement very carefully. Maybe you cannot sublease or rent out and ect.  There are hoa dues. sometimes these are very substantial and never stop.    I finds condos not a good investment and I find the concept of living in them bad.

2 cents worth.

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