All Forum Posts by: Nicholas L.

@Stephanie Kern

Well, it's really going to come down to the CoC return, and whether it's worth it to put $40K+ of cash into a condo with no value add play. At $100 a month you're at about 3%, at $300 a month you're at about 9%. So where does it really land? And does it make sense as part of your / the buyer's portfolio?

You (or an investor) would need to confirm those taxes 100%, and have a really strong property manager.

Finally, just to disclaim again - I invest in Pittsburgh, and don't know the Las Vegas market at all. Property taxes are much higher here, and Capex is also a much bigger factor since so much of the housing stock was built between 1910 and 1950.

Hope this was helpful!

@Stephanie Kern

what's the neighborhood class, what's the zip code, how many bedrooms and bathrooms?  what did it last sell for?

@Stephanie Kern taxes cannot be $315 a year...

But I really have no stake in this, just encouraging you to be conservative...

@Stephanie Kern I think there is some overlap in the way you did your numbers - at $180K purchase / $1800 a month rent I get:

PI $863 (@ conventional 6%), taxes $315, insurance $42, property management $180, HOA $95, capex $120, vacancy $90 = $1705

so cash flow closer to $100/month.  in fact, loan @ 7% drops cash flow to $0.

So... I don't know anything about this market, this neighborhood or these condos, but they don't seem to be a slam dunk.

With that said, that doesn't mean they aren't a solid investment, but I don't see anyone netting $400 a month on them unless they're self managing and they don't need any capex or repairs whatsoever and the HOA never goes up =-)

@Stephanie Kern

would need to see all the numbers / expenses to comment further.

@Tyler J.

do you have funds for a down payment + reserves?  

what purchase price are you looking at?

@Michael Key agree.  New investors are just going to need cash as @Scott Trench said.

@Bryce Carr I would not recommend using hard money if this is your first purchase... stick with conventional.

Here are some questions...

Do you own a primary residence already?

Can you house hack?

How wide of a net are you casting for properties?

OK - there is not enough information in this post to know if this is a good deal or not.  It could need $1K, $10K or $100K worth of work... I don't see how you buy it without an inspection.

@Jennifer Shaw

Was a relocation fee required because this is California and they are moving out and you are moving in?

Seems like you should talk to an attorney - these are large amounts at stake...