$12,000 a month carrying cost and only asking $5000 rent. I’m sure this place would be safe for you to visit at night at a loss of $86K a year. Maybe getting mugged in the ghetto would actually save you money.
This condo in Escondido was offered to a cash buyer. Right now CD’s are paying less then $400 (on 70K) a month with no tax benefits. This condo would rent for $900+. There are currently renters in other units in this complex paying $1100-$1200 a month. The HOA is only $160/month (although not solvent at this time). So as a cash buyer you would be earning anywhere between $650-$950 a month with tax benefits. The HOA is not solvent because there are only 12 units out of 24 paying currently. There are 4 units listed for sale and the cheapest one after this unit is asking $109K. The HOA is not in debt and is able to pay water and insurance. The Roof was just done 3 years ago and the exterior was just painted this year. The HOA is not able to due routine clean-up. The pool is not usable. The current homeowners are pitching in with some routine maintanence and there is one tennant that has been cutting the grass. This is a primarily Spanish Speaking community (within the complex) and although very ghetto looking has a family atmosphere. The 7-Eleven across the street has an agreement with management to stop selling liquor after 11:30pm. There is an elementary a block away. This condo complex is surrounded by SFR. The neighborhood actually looks well kept, but this could be deceiving. I’m sure that there is crime issues in this area, but this is probably one of the best investments currently for a rental (dollar for dollar).
