Condo Quantitative Analysis - Thoughts?
Had an offer accepted on my first ever real estate deal - a condo which is in inspection negotiations now. Thoughts on my analysis? Any input? Did i miss anything? Property is on a land lease expiring in 2029 where i will then retain the land. I figure i can extra pay down the loan with my income since payment will be about $600 a month, where i can cut the loan in half then start renting out. Would retain as my first residence for about a year or so. HOA is reputable and has maintained the property well, with few properties on market each year. Let me know what you think!
Purchase Price: 128,500
Closing Costs + Working capital assumption: $15k ($7k + $8k, respectively)
Total Basis = $143,500
Rent (operating income) assumption based on past rents: $15,600 annual ($1300/month) ($14,400 @1200/month)
Expenses (annual figures):
Property Taxes: $2,800 (on dwelling)
Land Lease: $519
Tax District (deductible): $1,009
Association dues: $1,500 ($125 / month)
Trash: $500
Insurance: $1,000
Net Operating Income (prior to debt service) = $7,300 approx
Debt service (principal + interest): $7,000
Cash Flow after debt service = +$300