So I found a condo that is super cheap and the owner is offering financing. The return is negative to small for the first few years but then jumps to 30% in year 5 after and over 60% by year 10. Property will be paid off in 5 years. All in all I'd be out of pocket $50 bucks a month which I can cover from other cash flow positive properties that I own but I'm wary about ever having a property that costs me money from the get go. What would you do?
Not enough information here to give opinion upon
I suggest you run the numbers and they will tell you the answer
First off I'm anti condo and anti negative cash flow in most situations. Put them together and I'm turning the other way. But as far as the deal i don't have enough information to form an opinion one way or another. I need to see the numbers
Richard Jeffries, Next Generation Management and Consulting LLC | [email protected]
Agreed with everyone that we need more information. I would be wary as well about buying a breakeven/negative cash flow property, especially one that is a condo. Check the financials of the HOA, because your return could easily shrink if the HOA raises its fees or gives you a special assessment.
Negative cash flow is never good. Hoping for long term success
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