I came across a condo short sale in Ladera Ranch for $250,000, 2bd, 1230sqft, looks pretty decent. HOA is $150/mo. I’m estimating that if I put 10% down, the payment for PITI+HOA is going to be around $1810. I’m guessing the rental value is around $1600 for it so with tax deductions (I am in the 37% Fed+State bracket) I think it should be just about rental value. If I can get 10% off it would be a better deal because I could account for some maintainence expenses.
The question is: does it make sense to get into something like this? I want to keep my option OPEN to rent it out and move elsewhere if I wanted to so breaking EVEN with rent is extremely important to me… otherwise I will not buy.
Also, if I continue renting my tiny 650sqft condo it will cost me $17,000 over the next 12 months.
If you can afford the payment and do not plan to sell it for the next 7 years, I will buy it. You will lose some if you rent it out but as long as you could afford it, it is not a bad choice.
However, I would caution you on the HOA part. Read their reserve studies and get a good financial picture of the HOA.
If you can afford the payment and do not plan to sell it for the next 7 years, I will buy it. You will lose some if you rent it out but as long as you could afford it, it is not a bad choice.
However, I would caution you on the HOA part. Read their reserve studies and get a good financial picture of the HOA.
If you can afford the payment and do not plan to sell it for the next 7 years, I will buy it. You will lose some if you rent it out but as long as you could afford it, it is not a bad choice.
However, I would caution you on the HOA part. Read their reserve studies and get a good financial picture of the HOA.
If you can afford the payment and do not plan to sell it for the next 7 years, I will buy it. You will lose some if you rent it out but as long as you could afford it, it is not a bad choice.
However, I would caution you on the HOA part. Read their reserve studies and get a good financial picture of the HOA.
If you can afford the payment and do not plan to sell it for the next 7 years, I will buy it. You will lose some if you rent it out but as long as you could afford it, it is not a bad choice.
However, I would caution you on the HOA part. Read their reserve studies and get a good financial picture of the HOA.
Just keep in mind that rent rates may drop a bit as well. Just because it’s break-even now, doesn’t mean it will be in a few years. Also you need to consider vacancies when calculating rent income. Personally, I would prefer a lot more breathing room.
Just keep in mind that rent rates may drop a bit as well. Just because it’s break-even now, doesn’t mean it will be in a few years. Also you need to consider vacancies when calculating rent income. Personally, I would prefer a lot more breathing room.
Just keep in mind that rent rates may drop a bit as well. Just because it’s break-even now, doesn’t mean it will be in a few years. Also you need to consider vacancies when calculating rent income. Personally, I would prefer a lot more breathing room.
Just keep in mind that rent rates may drop a bit as well. Just because it’s break-even now, doesn’t mean it will be in a few years. Also you need to consider vacancies when calculating rent income. Personally, I would prefer a lot more breathing room.
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