Re: Newbies -might have first deal!?? Need Advice! - Posted by Jim(MA)
Posted by Jim(MA) on October 12, 1998 at 18:11:56:
Investing in Condominiums
As an experienced condominium investor I will share you the methodology that for us has been successful. I presently own 12 condominiums, 2 town house style and 10 garden style. One townhouse is owner-occupied. When investing in condominiums there are several important factors to consider in addition to the purchase price. Should any of these factors be unacceptable walk away its not worth the trouble.
- How is the area market for sales of condos?
- How is the area market for rental of condos?
- Do you want to be a landlord? Think carefully condos are not apartments and therefore more difficult to manage.
- How is this association managed?
- What is the financial condition of the association?
- What is the condition of the community and the structure(s)?
- What percentage of the units are owner occupied?
- What is the make up of the board?
- Does the association have a realistic budget that includes longer term maintenance issues?
- Does this association have a history of special assessments?
- Does the association suffer from apathetic owners?
- Does the condo fee seem realistic for the services provided?
When I am satisfied that all of the above issues are satisfactory then the issue becomes price.
You really have not given enough information for an accurate assessment of, is this a deal. But with the limited inforamtion given I agree the price should be in the 30-35K range for the rental income given and hopefully the unit is in a fannie/freddie conforming community so that you could do 90% financing although below 40K even that can be difficult in a non-conforming community your looking at 70% financing maximum.
Feel free to email me if you would like more information