Exc. advice Temeculaguy, but I’m concerned about the high HOA fee if there isn’t any amenities for this $$ such as pool/jacuzzi/gym.
Trash for an SFR (if you only allow the smallest – 39 gal. receptable) is about $13 mo. for weekly p/u. (wrapped into prop. tax “People’s Ordinance” in the City of SD where RB is located); water (if no lawn) can be as low as $25 mo.; fire ins. with $1000 ded. for a “replacement value” policy on a $140K condo can be as low as $32 per mo.; sewer as low as $17 mo.; Landscaping svc. as low as $60 per mo.; That adds up to $147 mo. for a 2br/1ba (most likely 1 ba) older-home rental – maybe $170-175 if there is a “postage-stamp” lawn that needs watering plus added fire ins. for an SFR. I would also be concerned here about future HOA hikes as well as special assessments.
However, I don’t see a 2 br/1ba house costing any less than $260K, if it still needs a little work in order to rent out. I really think you could count on an SFR beginning to appreciate in the next few years but not necessarily a condo.
I would also think you would have less vacancies with an SFR (all depending on where it was located, of course). Also, I’d like to add that the “People’s Ordinance” in the City of SD does NOT APPLY to condo complexes, ONLY SFR’s.
If jimmyle can’t qualify to purchase an SFR, my points are moot.
jimmyle, have you checked to make sure the condo doesn’t still have polybutylene plumbing between the walls? It’s a disaster waiting to happen (or has already exploded) and was prevalent between 1979 and 1989 build-dates. If there is some of this still left in the building, I wouldn’t touch it. That’s just me. FYI, many owners who got their class-action settlements in 1994 for faulty PTB DID NOT spend this $$ on plumbing upgrades. I wholeheartedly recommend you check into this before making an offer.
