All Forum Posts by: K T

Thank you for your comments, Jon.

San Diego
Sale price: $60,000
1br/1bath
70 units in complex
HOA: $200
Rent in area: $900
Build in 1970

We are thinking to make an offer, but we found out that this complex has HOA financial problem. Many of owners did not pay HOA due in the past, so association had $40K debt as of last Dec 2008. 45 units sold to new owner last year, and 7 in escrow. So, I am hoping new owner started paying HOA and problem will be solved in a couple of years.

Is there not much things can do by HOA management company if some of owner does not pay HOA? What will happen if HOA would be broke? We can not make up our mind because of this issue. Any suggestion?

Thank you both for your advices.
Now I understand how cash flow calculation works. I will pass this deal and keep looking for a better one.

Thank you.

Hello, Jon.
Thanks for your response.

When I calculate cash flow, should I use total purchase price plus rehab as loan amount? Do not need to deduct down payment from purchase amount? Sorry for stupid question, but I am new with real estate investment and not really understand yet the rule of cash flow calculation.

I am planning to put $30 down, so I will loan $65K. If I use this number as Payment, there will be positive cash flow. Is this right way to do cash flow calculation?

City Heights, San Diego
Second floor unit of Condominium of 6 unit complex
736 SqFt
Build in 1992
One car garage + one off-street parking space
Rehab cost about $2,500
Rent: around $1,200
HOA fee: $220 (include CAM, Bldg Maintenance, Water, Limited Insurance)
Property tax: $1,000
Listing price: $95,000
**This complex was converted into condominium in 2005**
Newer roof, well maintained outside. Newer A/C, heater, stove.
Newly arrived immigrant communities, not really good area in SD

This would be my first investment.
What do you all think? Is it good to buy?

That is right, $8,000 is a lot to lose. I will talk to CPA.
Thank you

Thank you for quick response, Richard. I've read the general instruction of form 5405 and I had a feeling that I would be qualified for $8000.00 credit since my first purchase is for investment, not primary residence, but second purchase would be my first time purchase of primary residence.

Instruction says;
"first-time homebuyer is who did not own any other main home during the 3-year period"

What do you think?

Hi, Chris. I am not USN retired...

Hello everyone. I am new in real estate investment.
I found one property which is good as investment. I am not planning to live in this property, hopefully to find my primary home by end of 2009 after buying this one.
My question is that am I qualified as first-time buyer even if I purchased investment property first? I appreciate your comments, thank you!