Investment Property? Opinions Needed!

[CHRIS]

Hey Guys/Gals,

I'm thinking of buying a condo in Florida near my parents. It's already being rented and the woman is in lease until September, she also plans on renewing then as well.

Basically it would be only 700 a month out of my pocket after her rent is applied and i would own a 2 bed/ 2 bath condo.

not to mention money back on my next taxes.

condo was built in 2005 and needs nothing at this time

I can turn it around in 5 years and basically double what i paid for it.

**my parents have 4 houses, 3 they rent, they all have more than doubled in the last 5 years. They want me to do the same**


Opinions? Should i do it?

[new06Civic]

Originally Posted by CHRIS

Hey Guys/Gals,

I'm thinking of buying a condo in Florida near my parents. It's already being rented and the woman is in lease until September, she also plans on renewing then as well.

Basically it would be only 700 a month out of my pocket after her rent is applied and i would own a 2 bed/ 2 bath condo. W/ this sentence, I wouldn't do it. It is too risky. If the renter pay for the rest of the payment, I would go for it.

not to mention money back on my next taxes. You'll get a portion of it back, but not everything back.

condo was built in 2005 and needs nothing at this time

I can turn it around in 5 years and basically double what i paid for it. I wouldn't be too confident. The market at certain location in the U.S is at its peak, and some market is over priced. If you are certain that you can double your return in 5 years, go for it. A word of wisdom, there is no guarantee in any investment. If it is guarantee, I would load my 401k on it!

**my parents have 4 houses, 3 they rent, they all have more than doubled in the last 5 years. They want me to do the same** 5 years ago is a totally different market than now, and the house is still affordable and on its way up. After 2005, most housing markets are at its peaks.

Opinions? Should i do it?

[CHRIS]

cant ask the renter to pay more than $1050 (what she's paying). thats pretty much top dollar for the area.

$700 out of pocket a month isn't bad at all, shit i pay $1600 for a tiny apartment in Manhattan lol ( i know two completely diff markets)

So if i don't "double" my money, what do you think i would make in five years? $70,000?

The area is building up so fast i would feel like i'm missing out

[sichick]

i would just do you homework really well, looks like theres going to be a turnaround in the market from what i have been hearing here at the office since the stock market went down about 400 points

[MAMA'S~HONDA]

I say buy it, kick the renter out and invite all your 8thgen friends to spend thier vacation in florida for free

Seriously though, you'd really have to do your research before making that kind of decision. 700 dollars a month, times 60 months is 42,000 dollars not counting money down, upkeep, etc. Would you still be making your money back? Good luck on whatever you decide.

[CHRIS]

Originally Posted by MAMA'S~HONDA

I say buy it, kick the renter out and invite all your 8thgen friends to spend thier vacation in florida for free

Seriously though, you'd really have to do your research before making that kind of decision. 700 dollars a month, times 60 months is 42,000 dollars not counting money down, upkeep, etc. Would you still be making your money back? Good luck on whatever you decide.

it's 0 down, and i found out its 550 not 700...my mistake

that 550 includes everything, maintanence, upkeep, taxes, ins etc..

just seeing what my options are

i sold my car, credit cards paid off, and just paid off my college, my company pays for my phone and metro card

i literally just have rent and thats it, i have a go0d chunk of change extra every month and i want to invest it now while i'm young

any other suggestions? im open to hear anything

[CHRIS]

Originally Posted by sichick

i would just do you homework really well, looks like theres going to be a turnaround in the market from what i have been hearing here at the office since the stock market went down about 400 points

i wish that turn around hit Manhattan!

for shits and giggles, go to craigs list, choose new york and Manhattan, then houses for sale.

It makes me sick!

i realized i'll prob never own here anytime soon, so i should invest outside of the city

[new06Civic]

Originally Posted by CHRIS

cant ask the renter to pay more than $1050 (what she's paying). thats pretty much top dollar for the area.

$700 out of pocket a month isn't bad at all, shit i pay $1600 for a tiny apartment in Manhattan lol ( i know two completely diff markets)

So if i don't "double" my money, what do you think i would make in five years? $70,000?

The area is building up so fast i would feel like i'm missing out

It is very hard to predict how much you are going to make in 5 year. The current market is very fragile. If the market in your area is at its peak, there is always a chance you might lose a lot of money on it. And you have to equate the 33K out of your pocket in 5 year too. There are maintenance fees, vacant fees, etc. You can write it off, but you'll never get full return for it.

There isn't many location build up faster than my location. The highways, dealerships, city parks, shopping centers and malls, city hall, etc. are brand new. It is among the fastest growing city in the U.S. The price is slowing down tremendously.

Please carefully do your research on your market in your location.

[FG*SQUAD Nick]

sounds like a good deal to me.. if you can afford it and not be straped.. 100% do it... it will be well worth it down the road... in 5 years with you paying 700 and the renter.. paying 1050 thats over 100k in 5 years...

[aki]

On the surface, it sounds like a no-brainer good deal--but to dig in deeper:

What is your monthly income? Is it enough to pay for the mortgage even if the rent money falls through? If so, then sounds like a good investment. Also, what's the trend of in your area? Is it a growing community? Is it on the decline? Are people moving out or moving in?

If you'd be barely scratching by with the condo, then I'd say wait. If you're making enough money that you wouldn't be living paycheck to paycheck, then go for it.

There are other viable money options, like investing in mutual funds.

[new06Civic]

Originally Posted by FG*SQUAD Nick

sounds like a good deal to me.. if you can afford it and not be straped.. 100% do it... it will be well worth it down the road... in 5 years with you paying 700 and the renter.. paying 1050 thats over 100k in 5 years...

If the market holds up, the overall number looks good but the condo is in a fragile market. Florida Real Estate News

[Sli(ks]

I used to volunteer with Habitat for Humanity and a lot of the people I worked with bought houses, reonvated them to increase their value, and then sold them for profit. Someone I knew made nearly $60,000 for a little over 6 months of work lol. She knew a lot about construction though and did everything herself, so hiring contractors would probably cut into your profits. Like that show on TLC, property ladder.

If I were you I'd look into upgrading the condo and maybe increasing its value - that way when you do get rid of it your profit will be that much higher.

But definetely don't rush into anything, you might regret it later.

[CHRIS]

good advice so far everyone thanks

keep it coming

mutual funds huh? where can i get more info on them? like i said i just hate having extra money sitting in my bank, i need to invest it or i'll go crazy!