All Forum Posts by: Chris Westie

Thanks, Greg S. for the comment.  You are certainly right, there.  Depending on the area, of course, but what type of dwellling do you gentleman prefer?

So then I'm looking at $285-$140= $145/month of profit if I manage the place myself. HOA does suck and I agree with what everyone has said about them but this place has the location check box for sure.

Thanks, guys.  The maintenance and repairs stuff definitely will materialize.  I agree with @Nick C. about the HOA, but the ones in this area have been some what stable with dues etc. This place doesn't have anything other than landscaping and trash to really pay for (i.e. no pool or other amenities) that could cause a huge assessment. Most HOA payouts I would likely guess would be covered by the insurance.

So is 10% per month generally a good number to use for repairs and vacancy costs?  

Looking to buy rental condo. $184,000 property, 20% down, so finance 147,200. Rate estimated to be 4.75% 30 yr fixed, taxes $2175/yr, insurance $600/yr, HOA dues $115/month. Cost estimate would be about $1110/month. Units in this area have rented for $1350-1395/month in a short period of time, recently. This unit is nice, so let's assume I could get the upper limit at $1395/month. That's $285 of cash flow per month (assuming no repairs etc). Cap rate of 9.1% (12*1395/184000), and rate of return on the 40k down payment of about 8.5%.

My question is do these numbers look good to the experienced investors and landlords?  What numbers or ratios do you consider before buying?  Thank you, this is my first potential investment purchase.