Possible condo purchase

[Aaron Moore]

Condo just came on the market and is being sold as is for $13,900. Needs a little TLC based on photos. Most units in the complex rent for $700. HOA fee is $125 a month but I'd pay cash for it so a mortgage payment wouldn't be an issue. Ran the numbers through the BP rental calculator and my worst case scenario cash flow is around $230 a month.

Would love to receive feedback on if it's worth investing in a condo if you own it with no mortgage.

[Thomas S.]

Cash has a opportunity value of minimum 10% to investors so in a case where you purchase with cash you must deduct the 10% from the rental income as you would a mortgage/debt payment expense. This insures your cash is earning it's keep.