$400K purchase 25% down
$300K loan @ 4.00% = $1432 payment
+ taxes & insurance = $1900 PITI +/-
You will get your 5% CoC return just from the reduction of principal so any rent that you collect over $1900 +/- should be saved for maintenance & repairs.
(Do you know if you can qualify for financing?)
I wouldn’t expect any appreciation any time soon and there’s a good chance of dropping values and then a flat market for an extended period of time.
You will get an additional tax benefit from depreciation, assuming that you qualify, but this should be a bonus, not a factor.
I’ve been a landlord for over 30 years, it’s not for everyone. I would not suggest a condo as a long term investment.
You should be able to get at least $2250-$2500 a month rent OR it isn’t worth buying.
You can get much better returns in other areas.
