The Grande may be a nice building, but in the end, those one bedroom condos are not worth $100,000. Two bedrooms will be lucky to be worth $150K.

Maybe only $50,000 and $80,000.

Sadly, this thread kept my mind churning last night after going to bed. Is there a bunch of stuff included in the HOA? ( like GYM? Cable? etc.)

Maybe 4plex and some of the other landlords can help us out and figure out a model of how you could own these places and safely cover the required payments.

A quick check of Craigslist shows 65 properties listed when searching for Downtown max $1000 1B+. A massive 711 when removing downtown.

At a $50,000 purchase price, that little one bedroom with the $626 HOA, will have $42 in property tax, $249 in interest and another $40 or so in principle (not an expense). Not to mention the $10K down for 20% down. Total expense before you even start to manage or lease is $866/month. Add in some umbrella liability or insurance as a landlord for safety and you’re easily over $900/month which means any vacancy leave you upside down (before taxes)

Since downtown/gaslamp is a “destination” maybe you could take the 2bd room and use it as a vacation rental competiting with the hotels in the area. But still, that $663 HOA is devastating. What kind of occupancy would you need and what rate would you need to charge to generate cashflow? Maybe a 75% occupancy (year-round) on the weekends (Fri-Sat night) at $250/night? That would give you about $1625/month before vacation rental expenses (cleaning crew), management co. fees, etc. I don’t think that’s feasible. Hate to think about the where and tear for downtown partiers churning through though.

Other ideas? Can the numbers work for those properties in the Grande without a 90% price drop?