ExFlyBoy5
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Long story short, we have an investment property (single family home) that I picked up a few years ago quite cheap. I haven't had any real tenant issues as of yet and the return is decent. Odds are that in the near future, I will not live locally and trying to manage the property could be quite a pain.
Anyway, my DW has told me of a business condo (actually two) that are getting ready to come onto the market. They each have long term tenants (one lease is due for renewal end of 2017 and the other mid-2016) and are both being offered for sale at $140K each. The rents are $13.50/SF and $14.00/SF (respectfully) and each one is about 1,100 SF. Current lease rates in the same condo park are running @ $15.00/SF.
The current return on the SFH is in the neighborhood of 6.5% and my back of the napkin figures show I would return about 8.4% on the cheaper-rent office condo.
As it stands now, I don't want both. The DW (who is a R/E Broker) says we could sell our SFH in the neighborhood of $275K in a relatively short order. If we decided to do the office condo, it would be a cash deal for one or both.
I have heard lots of bad stories of HOA issues with condo HOMES, but just not real familiar with office condos.
It *seems* it would be easier to manage a business condo than a SFH from a distance. Also, I don't want to wait around and try to sell the house in a couple of years when the market could very well be down.
So...what say you?
Anyway, my DW has told me of a business condo (actually two) that are getting ready to come onto the market. They each have long term tenants (one lease is due for renewal end of 2017 and the other mid-2016) and are both being offered for sale at $140K each. The rents are $13.50/SF and $14.00/SF (respectfully) and each one is about 1,100 SF. Current lease rates in the same condo park are running @ $15.00/SF.
The current return on the SFH is in the neighborhood of 6.5% and my back of the napkin figures show I would return about 8.4% on the cheaper-rent office condo.
As it stands now, I don't want both. The DW (who is a R/E Broker) says we could sell our SFH in the neighborhood of $275K in a relatively short order. If we decided to do the office condo, it would be a cash deal for one or both.
I have heard lots of bad stories of HOA issues with condo HOMES, but just not real familiar with office condos.
It *seems* it would be easier to manage a business condo than a SFH from a distance. Also, I don't want to wait around and try to sell the house in a couple of years when the market could very well be down.
So...what say you?