All Forum Posts by: Brandon Eleazer

Michael,

Thanks for the input. Very true that most big ticket maintenance items are not a concern with a condo. Even still, Here is a breakdown:

$800month rent x 50% = $400

$400 - $200 mortgage($32,000 @ 6.5 - 7%, 30yrs) = $200

$200 - $278 monthly HOA = -$78/month

Has anyone had success with renting a condo unit with positive cash flow? Due to condo fees (at least $200-$300/monthly), this seems to eat up all the potential cash flow. I don't see the 50% rule working well once the HOA fees are factored in, even when the purchase price ($40,000) and rent amount ($800) support the 2% rule.

I feel for ya Max these look nice. It's good you're hanging in there and not panicking. I just listened to a BP podcast that talked about the importance of having multiple exit strategies in the event the flip cannot sell. I believe the speaker suggested to sell it to a buyer using a Land Contract.

I'm sure you don't want to rent it out, right? Would the numbers make sense?

Hey Yong,

Good luck with doing research and starting out. Blue Bell...very cool! We are neighbors; our office door is always open if you're ever down the Pike.

Great idea to put your thoughts/plan on paper (or screen).

Hey Paul,

Welcome to BP. I'm also searching Philly in the same price range. I'd like to fix and resell vs. buy and hold, but most of the inventory would do better as long-term rentals.

Enjoy the site!

Welcome Sean,

Enjoy getting involved in BP and being active in the REIA. Be sure to tune out any Guru Mumbo Jumbo... :)

Hey Aaron,

Welcome to BP....enjoy browsing the forums and I encourage you to participate when you get an opportunity!

Nice to meet you Bruce,

Good luck getting started in your newly found passion. What is your first "actionable step"?(as Mr. Dorkin would say)...

Hi Daniel,

I think if you're looking for a Duplex in good condition (move-in ready) located outside the city or close to being outside the city then a realistic goal is to break-even with your investment for at least the first year. This is because you are occupying one of the units which reduces your income in half, and also because you only intend to put down 3.5% so the monthly mortgage payment is higher than if you increase your down payment. This means that your tenant would essentially be paying your mortgage (aka you live rent free). However FHA only requires you to occupy the property for one year, so if you do that and then move out then you can rent out both units and be in a better position to cash flow.

Hi Carlos,

Welcome to BP! Good to see others in Philly getting connected. You're in the right place that's for sure....