Posted by Matt in Mich on July 21, 2003 at 14:58:26:
I’m new also, and looking for my first deal, so
many here can give better advice than I, but I read
a lot here and at other sites…
If you are putting 50K down, with a 140/month positive
cash flow - that seems razor thin to me.
I would look at comps for this condo - and see if you can get a purchase history on it, and others in the area, to see how they have appreciated in the last 5 years.
Also - a lot depends on your personal situation. Maybe
this 50K represents a small part of your money available for investment - or maybe it represents all of it.
If it’s a small part of your overall investment dollars - my personal opinion only is that it might
be like a speculative stock - something to try in a hot market.
If it’s a larger part of your investment dollars - I’d be cautious - as it seems that with 50K, you could find several rehabs, etc., and have a much higher chance of profit on some deals.
Of course, the future is unknown. The economy may roar back in 2004-2009 - and this condo might triple over
that time. Who knows. Just my thoughts.
I’d get the purchase history and comps either way though.
Good luck, and let us know what happens.
Matt in Mich