Should I buy my 2nd condo or not? I'm trying to decide what to do and am looking for thoughts. I just sold my condo in the Bay Area and took out a nice sum of money. I have a contract to buy a new condo in Reno that is under construction and should be ready in April. It has been delayed and I've been waiting since July. I paid 5% to reserve it and I can get out of the contract if they don't deliver in April. I'm renting in the Bay Area and working part time while I wait. I own another condo in Alexandria, VA where my girl friend lives. She moved there for a job and used to live near me. She covers most of the carrying cost which is mainly the HOA fee which is high since it's a high rise with a concierge, pool, gym, etc. Her share is about half of what it would rent for. I have had to pay some maintenance and upgrades. Both condo's are mortgage free. Together they about are 25% of my net worth. My original plan was to retire in Reno. I bought the Alexandria condo since rents were so high for her and I visit there every few months and stay a week or two. The condo has appreciated and I expect that to continue. If I rented it out full rate I'd make about 4% or so return per year on my investment plus the appreciation when I sold. Both condos are two bedroom, 2 bath. The one in Reno is a townhome style on the river just to the west. It's close to downtown and things to do. The cost to carry it is pretty low. It would probably also rent for about a 4% or so return after expenses. So my decision is do I move to Alexandria full time and cancel Reno and invest the money that I would have used to buy it or do I live part time in Reno and part time in Alexandria with the option to rent out or sell either one later if things change? What would you do?
Trying to decide about 2nd condo purchase
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Vacation4us
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I guess it depends on if you want to live with your girlfriend or rather stay on your own.
OldShooter
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This isn't a financial question. 
38Chevy454
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It depends on where you want to live, and if you want to live with anyone. From financial perspective, it sounds like the money invested to buy the Reno condo is not needed to generate living expenses. It's basically decide what you want.
Well, yeah, it's partly a life choice question but partly an investment and diversification question. We both like being together but we do enjoy our time alone too. I if don't buy Reno now I could get priced out if I decide to move later and I'd probably have to sell Alexandria to make the move later. Reno has gone up a lot and it keeps climbing due to job growth and California retirees moving in. I don't know how long I'd like to live back east, even though I do like Alexandria. Either condo could be a good rental property so there's the diversification angle. We might both live together at some point. Her parents live near Reno so if she left her job she'd move in with me in Reno. Or I get old and decrepit and she is still working I'd move in with her full time. She's younger and full of energy. In the mean time I'd visit there more often since I'd be retired. As far as needing the money I could easily hold both for 5 to 10 years or more and I'd only need to sell if things went south. If my investments work out I wouldn't have to sell.
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HI Bill
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Sound like this is a question the OP has to answer himself. I see it as two parts:
1) Would the OP like to live in Virginia with his GF? How would this be full-time (including location, weather, and relationship)?
2) Does the OP much prefer Reno over Virginia? (sounds like it).
Sounds like he can do either, financially!
As far as diversificaiton goes, without knowing total invested assets, the values of both properties, etc., it's impossible to determine the correct answer. Let's say the properties are worth $1.5M together, and the invested assets are only $0.5M, then, the OP would be over-weighted in real estate. If the OP has $4M in invested assets, having that much in real estate may be ok.
1) Would the OP like to live in Virginia with his GF? How would this be full-time (including location, weather, and relationship)?
2) Does the OP much prefer Reno over Virginia? (sounds like it).
Sounds like he can do either, financially!
As far as diversificaiton goes, without knowing total invested assets, the values of both properties, etc., it's impossible to determine the correct answer. Let's say the properties are worth $1.5M together, and the invested assets are only $0.5M, then, the OP would be over-weighted in real estate. If the OP has $4M in invested assets, having that much in real estate may be ok.
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I'm conservatively estimating 4 - 5% return as rentals plus what earn in appreciation when I sell. Both areas have strong rental markets and strong resale markets.
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Together they would be 25% of my net worth. Both would be mortgage free. The carrying cost of the VA property is mostly covered by my GF who lives there full time. The NV property has a low carrying cost to the point that I could lock it up and go on extended vacation.
Brat
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My caution about renting out a condo... many HOAs limit the number and some also require that it be an 'emergency' (or something like that). Be sure to read the CCNRs.
That's true and something that I'll have to look into. Many also prohibit short term rentals like AirBnB even if longer term rentals are allowed. I tried renting out my current place on AirBnB. It was an interesting experience.
W2R
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I'd figure out which option would give me the happiest life, and I'd do that. You only have one life to live and if you can afford either option, then quality of life is very relevant.
Here's an admittedly imperfect analogy: it's sort of like when I go to the restaurant with F today.
(1) Do I want a small Caesar side salad (low in calories! but getting a bit boring).
(2) Or, do I want a grilled chicken pita (higher calories! So I'd have to cut back later in the day).
(3) Or I could get a cup of my favorite corn and seafood chowder; in between these two as far as calories go, not boring but enough Cajun spices to make your eyes water.
Nobody else can make that decision but I'll probably figure it out on the fly. Right now I am leaning towards option #3.
pb4uski
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How about this?
Find and equally enjoyable squeeze in Reno and then split your time between Alexandria and Reno!
Find and equally enjoyable squeeze in Reno and then split your time between Alexandria and Reno!
How about this?
Find and equally enjoyable squeeze in Reno and then split your time between Alexandria and Reno!
Classic!
I moved in to my Reno condo last week and I'm enjoying living here. I visited Alexandria in the middle of May and things are going fine there. I decided to continue with my plan to own both places. Reno is really booming. There is a lot to do here.
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It sounds marvelous. You can now increase your visits/or length of visits to DGF (as desired), and bring her to Reno at least once a year during the good weather, and plan some fun outings.
Yes that is the plan. Her parents live near to me so that’s a bonus for her. Both places are 2 bed 2 bath so we have our space.
Teacher Terry
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I have been in Reno 22 years and love it. There is so much to do. Prices are skyrocketing though.
