How much is too much (-) cash flow for a condo. - Posted by Ivan

Posted by Chris on June 27, 2003 at 19:22:05:

Positive Cash Flow is most important for me.

I have several properties and they all have to generate positive cash flow to be considered “good”.

In regards to 1 bedroom, of course the larger size can genrate larger rents. In my case, I even own a “studio”, which turns out positive cash flow because it is in a high rent district here in Boston.

I would recommend continuing to look for “positive cash flow opportunities” or get the condo at a lower price.

How much is too much (-) cash flow for a condo. - Posted by Ivan

Posted by Ivan on June 24, 2003 at 16:12:19:

I’m looking at a 1 BR condo in upstate NY with an asking price of $82,000. The asking price is true to market. I can rent it for $925 per month. After doing an analysis, my mortgage would be $472, taxes $1600 yr., maintenance $177 (inc. HT/HW), insurance $35. Complex has little to no history of additional assesments. Adding all other expenses gives me a negative cash flow of $31 per month.

Does anyone think this is too risky considering its a condo and not a SFH?

Re: How much is too much - Posted by Arthur

Posted by Arthur on July 07, 2003 at 20:01:52:

Don’t forget to take into account the vacant periods. Vacancies on rental properties are running at almost 10% in the USA.

my view - Posted by Ronald * Starr(in No CA)

Posted by Ronald * Starr(in No CA) on June 26, 2003 at 03:28:35:


This does not sound like a bargain buy. Could you find something better? Unless you have looked at at least 100 properties, you probably are not ready to be buying yet.

Good Investing*************Ron Starr**************

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…


Re: How much is too much (-) - Posted by Lonnie

Posted by Lonnie on June 24, 2003 at 17:45:05:

Hello Ivan

Well, I will make this short and sweet. NO. I wouldn’t touch this because of where I am at. I don’t touch anything less that a 3 bedroom SFH. But I don’t know the NY market. I live in Las Vegas and a 1 br condo NO WAY.

It might work in NY considering all the 1 br apt in NY and single people I guess, but I don’t know. Personally I think the NY market would be a little challenging.