Posted by Sheik on May 11, 2000 at 10:29:28:
Yep, Thats right, alright.
I’m in Long Island NY. You’re probably shakin’ your
head from side to side right this minute 
Sheik
2Br Condo purchase - Posted by Sheik
Posted by Sheik on May 10, 2000 at 12:44:09:
Just looking for feedback. You know what they say, 4 eyes are better than 2.
Realtor brought this Condo to my attention. It is in pristine condition.
FMV = $68,000
Tax = $2400/yr
Maintainace = $275/mo (yep that’s not a misprint)
Insurance =180/yr
Owner says he will not go lower than $62,000.
I am thinking of buying coventionally - 10% down with a 1st @ approx 8.5% interest rate or lower if possible.
My debt service together with taxes, insurance and maintenance will be approx $920/mo
Fair market rent is about $1025/mo
I am thinking of Buying and L/Oing it for $1050/mo with a strike price of $72,000.
This will give me a monthly cash flow of about $130 plus a back end profit for approx $10K minus purchasing and selling closing costs.
What do you guys and gals think?
Thanks
Sheik
REMIND ME NOT TO BUY CONDOS IN NEW YORK!!! - Posted by Soraya
Posted by Soraya on May 11, 2000 at 12:16:03:
In San Diego real estate taxes on a $200,000 condo would be about $2,400 per year.
Same condo’s HOA fees are $180 per month.
How could the maintenance be $275 per month???
Rent sounds good.
Hey, You live in New York and I assume that those costs are not just for this property but for all property in that price range. You can make a profit. Go for it!!
HOWEVER, your strike price seems a bit low. I would add another $15K and give the tenant buyer (Optionee) a $400 per month rent credit (for the 1st year only) towards the pruchase price. Use one year l/o agreements. (If you don’t l/o the property within two weeks drop the monthly rent to $997 per month.) Make sure you get up front option consideration of at least $2500 to $3500.
I just bought a condo for $72K and L/O to Optionee for $104,700 and gave $400 rent credit per month if rent is paid on or before 1st day of month. If paid on the 2nd day, no rent credit that month. (By the way, don’t call it a rent credit in your option agreement, call it additional option consideration.) Up front option consideration was $5K.
Soraya
Re: 2Br Condo purchase - Posted by TomC (Md)
Posted by TomC (Md) on May 11, 2000 at 06:42:27:
Are those tax numbers right? $2400 on a 70K property seems a little steep to me. Where are you located?
TomC