aaronc879
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Jan 10, 2006
- Messages
- 5,351
I know very little about real estate investment but am considering buying a second condo in my building. A neighbor has been trying to sell his condo for a couple years without luck and has now dropped the price to 20% below appraised value and would likely go down another 5%+ so i'm thinking about it. The asking price is $32,000 and other nearly identical units have rented for $525 or $550. I expect that he'd accept an offer of $30,000. I would have to pay $175/mo condo fee, and $80/mo in property taxes and insurance so at $525/mo rent i'd clear $270/mo or $3240/yr. $3240/$30,000=10.8% ROI. Am I figuring that right? Is that a good enough deal? Is it better to finance? Any other tips/advice would be very welcome. Thanks.
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