Updated almost 10 years ago on . Most recent reply
Looking for guidance on numbers on possible first deal
HI BP fellows,
Been reading and listening to podcasts.
I am looking to pull the trigger on my first property and wanted to get feedback on the numbers from those who know.
2 bedroom 1.5 bath condo near college campus where vacancies are low.
Price 281k
Taxes 3200
HOA 200 a month
Current rented for 1600/month till June but with some paint and cosmetic work could be rented for 1800-2k like others in area.
Looking for guidance on how to value investment. Right now based on calc and tools I see that I would just cover mortgage, taxes and insurance.
Claude
Most Popular Reply
Maybe you are looking for the appreciation in the future (I don't think this property is in Bay Area based on your listing price so I don't bet too much on appreciation), but just looking at the number, it is a terrible deal. I ran a quick (quite detailed) analysis for you on this property and I think you are in deep RED if you go for this property assuming you will have 25% down for your conventional loan. Your out of pocket annual cash flow is $14,462 in order to own this property. The Expenses maybe a lot but it is a conservative number.
Good luck with searching for your property.
Phat