Buying a condo for investment–questions

[sdrealtor]

Thats a good one though it was actually $64,000 as it said in the agents notes the buyer paid about $4000 of the sellers costs. Even so, its a great deal and they are out there if you are willing to chase them.

I’ve seen a few decent ones go out in the North Park area in the 70’s and 80’s in the small complexes. I perfer those becausethey have very low HOA fees that will stay low because of very active owner involvement and its easy to check up on the ownership to find the complexes full of longtime owners that arent over leveraged. Tougher to do in the complexes with 100+ units.

[Ren]

[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.[/quote]

If you’ve already had the condo rented out for a while (how long depends on the lender), they will count part of the rent as income. Usually 75% is my understanding. Sounds like this deal would put you a few hundred in the red where the bank is concerned, so they’ll count that as a liabilty along with other debt when they decide if you can afford the loan for the primary. Just stay debt-free and you’ll pull it off easy.

[Ren]

[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.[/quote]

If you’ve already had the condo rented out for a while (how long depends on the lender), they will count part of the rent as income. Usually 75% is my understanding. Sounds like this deal would put you a few hundred in the red where the bank is concerned, so they’ll count that as a liabilty along with other debt when they decide if you can afford the loan for the primary. Just stay debt-free and you’ll pull it off easy.

[Ren]

[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.[/quote]

If you’ve already had the condo rented out for a while (how long depends on the lender), they will count part of the rent as income. Usually 75% is my understanding. Sounds like this deal would put you a few hundred in the red where the bank is concerned, so they’ll count that as a liabilty along with other debt when they decide if you can afford the loan for the primary. Just stay debt-free and you’ll pull it off easy.

[Ren]

[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.[/quote]

If you’ve already had the condo rented out for a while (how long depends on the lender), they will count part of the rent as income. Usually 75% is my understanding. Sounds like this deal would put you a few hundred in the red where the bank is concerned, so they’ll count that as a liabilty along with other debt when they decide if you can afford the loan for the primary. Just stay debt-free and you’ll pull it off easy.

[Ren]

[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.[/quote]

If you’ve already had the condo rented out for a while (how long depends on the lender), they will count part of the rent as income. Usually 75% is my understanding. Sounds like this deal would put you a few hundred in the red where the bank is concerned, so they’ll count that as a liabilty along with other debt when they decide if you can afford the loan for the primary. Just stay debt-free and you’ll pull it off easy.

[Author]

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