All Forum Posts by: Sanket Patke

Thanks all for your inputs. My challenge is that its hard to find deals with a strong cash flow in MA due to high property prices and I am not seasoned enough (and brave enough) to start out with an out of state deal or an in-state property that would need major fixing. My thinking is that I will use this as a learning experience, not have any cash flow, and with a 5-7 year horizon, use the appreciation to expand my portfolio some place else. The $$ I will save on the closing costs can offset the slight negative cash flow that I may encounter. 

@Daniel McDonald My HOA is 400 and they keep increasing it 2-3% annually so you are right. I am thinking that can be offset by increasing rent periodically at the same rate. I am a rookie so don't know much about duplexes in the area. Happy to chat. Are there any towns in MA or NH that you can recommend that would have a better cash flow and appreciation?

@Jesse Jamrowski 9% would come from someone paying my principal portion of the loan.

Would you be open for a quick chat on phone?

Need some help evaluating rentability of my condo (current primary home): 

2Bed2Bath condo in Burlington, MA. Average rent in the area is ~3100. If I was to rent it out I would break even or maybe even have a slightly negative monthly cash flow. Its a great neighborhood and has seen ~25% appreciation in the last 5 years. Condo is in a great shape and would need minimal annual repairs with everything external covered by HOA. Overall ROI return will be 9%. Need help in deciding if it is worth renting. My thoughts:

Why renting would make sense:

1. Despite negative cash flow, ROI is not terrible and real estate appreciation is great in this area

2. As a first-time landlord, I'd feel comfortable renting this out knowing that it will not need heavy repairs and know the area well

Why renting will not make sense:

1. Could take the appreciation and buy in another place with a better cash flow and appreciation