I was hoping surveyor woudld appear. I usually put in gross amounts of sweat equity so would not be crunching the numbers from a turnkey start.
Like him I am condo-phobic. However,my two cents…This property could be approximating a good start for an owner occupied situation.(I didn’t study it much). This is for beginning investor, not rich guys. The idea is get a good entry price and take the lower rate and put less down and save the rest for better opportunities if they come up, maybe a detached house, keeping in mind most lenders factor rental income at .75(rent).
Lots of single and young couples do this just to get their own places and work on future housing from there. Condos normally have a bad reputation for appreciation.The really easy money and apparently the stigma of being a non- owner drove prices up ,not value because generally speaking(outside of manhattan) the value is in the dirt which condos have little of. Back to the point, eventually they cash flow better and better and the principal as you know, gets paid down. You keep it or sell based on market factors and your personal criteria.
If you are looking to add to or start a portfolio of rental properties I agree this is not a good start.
So what is a good start? Properties out of this market and markets like it, for the most part. Maybe out of state. I am sure you can wait for a bettter opportunity in SD and keep learning and eventually do O.K. here.
