All Forum Posts by: Coley Mitchell

Hello,

This is officially my second post on here since joining last week (first post was a new member intro) and part of the reason why I joined... to get advice on a purchase I've been considering.

Here is my situation. I currently own a condo in Savannah that I purchased in 2006 as my primary residence. I owe $138K at 4.125% interest following a refi last Nov. It rents for $1190. After prop management fees, poa dues, and mortgage payments, I lose about $120 a month. Sounds bad, but I use to lose about $480 before the refi... I place is worth anywhere from $80-$110K. Only comps have been short sales and some foreclosures (it is a 340 unit property)... the Zillow Zestimate says about $110K.

Anyway, there is unit available right now that I think I could get for $70k. My property manager, whom I know well and trust, thinks she could rent it for $1075. Running the numbers on a 30 year conventional (PITI and PMI) with the same interest rate I have on my other property with a 20% downpayment, it looks like I would net about $350 a month, earning around a 20% return on my money.

The kicker is that I would have to get a rental waiver on the unit as the POA only allows for 45% the units to be rented at any given time (and there is a wait list). For the record, I was told the same thing when I moved and rented my unit last time (without obtaining a waiver first) and once it was brought to my attention a well written letter took care of it. I'm still waiting to hear back on whether or not the unit has a waiver already, but I would assume not.

Assuming I could make that happen somehow, do you think this would be a good purchase if my goal was to try and rent it for a year then cash out? I would put all profit back into the mortgage to pay it down as quickly as possible in a year's time. Would also provide a decent ta benefit. We would like to buy a house next year and I thought this might be a good way to possibly double our money in a year or so to help with downpayment.

Too much speculation here??? Advice welcome.

-C

Thanks for input.

Already started on the Ultimate Beginners Guide - will finish that up tonight.

Been listening to the podcasts as well.

Hello All,

Just joined and wanted to say a quick hello. Been looking for a resource like this for a while, and it looks like I finally stumbled on the right one.

A bit about me... I'm 31, married, and am expecting my first child July 1 which certainly has me thinking more and more about the future. I have an apartment in Savannah, GA that was my primary residence, turned (upside down) investment property in 2009. Was losing about $500/ month since then until finally being able to refi last year under HARP 2. Only bleeding about $100/ mo now (before tax) which is a big win sadly.

Looking to take the experience I've gained from this property, and combine it with new skills acquired through resources like this community to move forward with new investment properties... perhaps even ones that put money INTO my pocket.

Looking forward to getting involved.

-Coley