I like your numbers, close to 100x rent multiplier. People trash talk condos as investments but that hoa takes care of some crap you would have to pay for if it was an sfh. trash, exterior water, landscaping, fire insurance, etc. it comes out in the wash, if your rent numbers are right and can get it for that price, you are close to rent nuetral from the start, a good sign. In ten years, it’s a flowing cash cow, if you put in the work and have the reserves for bad months and problem tennants.
I think the best way to evaluate a potential investment rental is by running the numbers and assuming it will never go up in value. Too many people factor a few years of survival and a windfall from appreciation, if that appreciation never comes, what then? Your scenario looks good, make sure the loan is fixed so in a decade or two, you’ve actually paid down the loan, never refi, never take cash out, once it rents for more than it costs, bank the difference, but don’t spend it. When that builds up, at the next downturn, buy another, lather, rinse, repeat, in 30 years you own a few of them outright, by using the cash flow from the oldest to pay down the newest. I stole this little strategy from my parents, they are retiring and are pretty happy with how things went, it wasn’t easy and it wasn’t quick, but it works.
