Re: cash flow for a condo. - Posted by RichV(FL)
Posted by RichV(FL) on June 24, 2003 at 20:12:53:
I started in condos. And I have made some pretty good money on them. I still own one to this day.
I myself will not purchase a property unless I can pull in a positive cash flow from it.
In my opinion that maintenance fee eats way to much into your cash flow.
And just because there is not a history of assesments does not mean there will never be any in the near future. Trust me on this one. I learned my lesson the hard way.
Say next year the raise the maint. fee? Then you will be pulling in more of a negative.
Ivan, please dont misunderstand me I have nothing against condos…like I said i started in REI that way.
If you want to get into condo investing try to find ones that you can pull a positive cash flow just in case there is a maint. fee increase or special assesment. Also look over your “docs” with a fine tooth comb.
And always think resale. 2 or 3 bedroom condos sell better than a 1.
Just some thoughts…