Buying a condo for investment–questions

[jimmyle]

This is a newer condo built in the 90’s so I think it is not a problem.

[quote=bearishgurl]
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.[/quote]

[jimmyle]

No, this is the Water Bridge complex. It was built in the 90’s.

[quote=Scarlett]Is this condo in the senior community in Oak North? Or Seven Oaks? Those complexes were built in late ’60 , searly’70s. Being so old they may have problems cropping up and the HOA may increase significantly… They have swimming pools/spa. 7 oaks has a club & gym I think.[/quote]

[jimmyle]

No, this is the Water Bridge complex. It was built in the 90’s.

[quote=Scarlett]Is this condo in the senior community in Oak North? Or Seven Oaks? Those complexes were built in late ’60 , searly’70s. Being so old they may have problems cropping up and the HOA may increase significantly… They have swimming pools/spa. 7 oaks has a club & gym I think.[/quote]

[jimmyle]

No, this is the Water Bridge complex. It was built in the 90’s.

[quote=Scarlett]Is this condo in the senior community in Oak North? Or Seven Oaks? Those complexes were built in late ’60 , searly’70s. Being so old they may have problems cropping up and the HOA may increase significantly… They have swimming pools/spa. 7 oaks has a club & gym I think.[/quote]

[jimmyle]

No, this is the Water Bridge complex. It was built in the 90’s.

[quote=Scarlett]Is this condo in the senior community in Oak North? Or Seven Oaks? Those complexes were built in late ’60 , searly’70s. Being so old they may have problems cropping up and the HOA may increase significantly… They have swimming pools/spa. 7 oaks has a club & gym I think.[/quote]

[jimmyle]

No, this is the Water Bridge complex. It was built in the 90’s.

[quote=Scarlett]Is this condo in the senior community in Oak North? Or Seven Oaks? Those complexes were built in late ’60 , searly’70s. Being so old they may have problems cropping up and the HOA may increase significantly… They have swimming pools/spa. 7 oaks has a club & gym I think.[/quote]

[jimmyle]

If I stay in this condo until I buy my primary residence would that make it simpler? If I borrow $100K for this condo. Would I have any difficulty borrowing $400K for the primary residence later with 20% down? Our income is around $150K.

[jimmyle]

If I stay in this condo until I buy my primary residence would that make it simpler? If I borrow $100K for this condo. Would I have any difficulty borrowing $400K for the primary residence later with 20% down? Our income is around $150K.

[jimmyle]

If I stay in this condo until I buy my primary residence would that make it simpler? If I borrow $100K for this condo. Would I have any difficulty borrowing $400K for the primary residence later with 20% down? Our income is around $150K.

[jimmyle]

If I stay in this condo until I buy my primary residence would that make it simpler? If I borrow $100K for this condo. Would I have any difficulty borrowing $400K for the primary residence later with 20% down? Our income is around $150K.

[jimmyle]

If I stay in this condo until I buy my primary residence would that make it simpler? If I borrow $100K for this condo. Would I have any difficulty borrowing $400K for the primary residence later with 20% down? Our income is around $150K.

[garysears]

If you aren’t going to live in the condo, why are you attracted to this particular deal? I think there are many other deals out there that will net you a better return on your down payment. I would be looking to pay 80K or less (depends on area). I would be attracted to places where the investor owned ratio is too high for the Fannie Mae rules. I would look to pay cash. Why compete with FHA 3.5% down?

Condos are risky due to the potential for HOA fiascos and bankruptcies. I would do some careful due diligence before putting my money at risk.

I agree with assuming zero appreciation. Do the math on PITI and rents and assume some downside to rents. Factor in vacancies with turnover. For maintenance, do some research on normal costs and be generous. Now see how the deal pencils out. If it is about break even why would you do all the landlord work for free?

Full disclosure: I am not a landlord but this is how I am approaching my search for my primary residence. I refuse to put myself into financial extremis and will either find a deal that will easily cashflow as a rental or I will not buy.

With all the distress out there, a little determination should lead you to a deal that makes sense.

[garysears]

If you aren’t going to live in the condo, why are you attracted to this particular deal? I think there are many other deals out there that will net you a better return on your down payment. I would be looking to pay 80K or less (depends on area). I would be attracted to places where the investor owned ratio is too high for the Fannie Mae rules. I would look to pay cash. Why compete with FHA 3.5% down?

Condos are risky due to the potential for HOA fiascos and bankruptcies. I would do some careful due diligence before putting my money at risk.

I agree with assuming zero appreciation. Do the math on PITI and rents and assume some downside to rents. Factor in vacancies with turnover. For maintenance, do some research on normal costs and be generous. Now see how the deal pencils out. If it is about break even why would you do all the landlord work for free?

Full disclosure: I am not a landlord but this is how I am approaching my search for my primary residence. I refuse to put myself into financial extremis and will either find a deal that will easily cashflow as a rental or I will not buy.

With all the distress out there, a little determination should lead you to a deal that makes sense.

[garysears]

If you aren’t going to live in the condo, why are you attracted to this particular deal? I think there are many other deals out there that will net you a better return on your down payment. I would be looking to pay 80K or less (depends on area). I would be attracted to places where the investor owned ratio is too high for the Fannie Mae rules. I would look to pay cash. Why compete with FHA 3.5% down?

Condos are risky due to the potential for HOA fiascos and bankruptcies. I would do some careful due diligence before putting my money at risk.

I agree with assuming zero appreciation. Do the math on PITI and rents and assume some downside to rents. Factor in vacancies with turnover. For maintenance, do some research on normal costs and be generous. Now see how the deal pencils out. If it is about break even why would you do all the landlord work for free?

Full disclosure: I am not a landlord but this is how I am approaching my search for my primary residence. I refuse to put myself into financial extremis and will either find a deal that will easily cashflow as a rental or I will not buy.

With all the distress out there, a little determination should lead you to a deal that makes sense.

[garysears]

If you aren’t going to live in the condo, why are you attracted to this particular deal? I think there are many other deals out there that will net you a better return on your down payment. I would be looking to pay 80K or less (depends on area). I would be attracted to places where the investor owned ratio is too high for the Fannie Mae rules. I would look to pay cash. Why compete with FHA 3.5% down?

Condos are risky due to the potential for HOA fiascos and bankruptcies. I would do some careful due diligence before putting my money at risk.

I agree with assuming zero appreciation. Do the math on PITI and rents and assume some downside to rents. Factor in vacancies with turnover. For maintenance, do some research on normal costs and be generous. Now see how the deal pencils out. If it is about break even why would you do all the landlord work for free?

Full disclosure: I am not a landlord but this is how I am approaching my search for my primary residence. I refuse to put myself into financial extremis and will either find a deal that will easily cashflow as a rental or I will not buy.

With all the distress out there, a little determination should lead you to a deal that makes sense.

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