I am looking at a condo that is going for 85K. It is in a 6 story multi unit condo building where i have put in other bids as well. This unit is updated with granite countertops and marble flooring, with nice bathrooms. It is a "loft" unit apartment 1 bedroom 1.5 bath unit with exposed brick& high ceilings. Alls i would have to do is buy new SS appliances and rent it out. Its not a great town, but its in a better area and decent building. but i want to invest my money and have a positive cash flowing property, and for my first one i want something small i can handle like this.
Rents go for 1250 to 1400. with expected rent to be 1325-1350. I only want to put 10 to 12 k down and finance the rest. So assuming a purchase price of 80K with 10% down (8K) and then + 4K for SS appliances. Total invested capital at 12k. and assuming a 72K mortage with a monthly nut of 1150 (including taxes($4892) hoa($234 etc). and i rent out for 1350 which is a positive cash flow of $200 a month.
I guess my question is, is this a good starter investment, and a good financing strategy? What would you do?
It might be a little tight on cash flow if something where to come up concerning CapEx. But then again Im not sure if you would ever need to invest money into the Condo in the near future. How did it turn out? Paterson is a risky town I have some multi units here and it seems the municipal govt keeps getting worse for landlords.