Hi, I am looking to possibly purchase a condo in my area. I signed the contract and looking for financing now. The condo is $150K for a lake view 1 bedroom of only 781 sq ft. Expensive in this area for its size. 1 bedrooms usually range from $110k to $125, but these are the nicest so far. They went on sale in January 2005 with 260 units for sale, and they are already half gone. I got the last 1 bedroom lake view.
Heres a link to their site:
www.bellezacondos.com
Just for reference, a 1600 sq ft 3 bedroom house is minimum $250K out here. Sounds good so far, but my concerns are of course, if it is rented will it cover most of the mtg, and will it appreciate even though it is small? The other condos of lower value get $800 mth rent. After working the financing, I will probably do a 5 or 7 yr arm interest only, and let it go after that time. This will result in a pymt of between $1000-$1100. Doing a regular 30 yr loan , brings it to $1250 or so. Interest pymt is $575 on the 5 yr, with a 2nd (20%) of $240 a month. This a 100% finance. The 7 yr is $660 interest but will require 5% down, and $92 month pmi. I would like to avoid pmi, and but as a residence, but I own rental property in the same area, and they dont like that. I would like to see if they will submit it, and see what happens. The 7 yr also will reduce closing costs ($6600 ) by $1000.
For both pymts, taxes will be $191 (not this year, but est for the following year. & Assoc fees of $151 mth. No haz ins needed.
I think the 5 yr is best since there is little outlay, and no pmi. I cant see this renting for more than $800-900 a month. So it will create a small monthly loss (negative cash flow), but hopefully the appreciation will beat that out.
BTW, further in town, a 3 bedroom single family home (1600 sq ft) can be had for $150K with lower taxes, and lower hoa dues, and rent for more $$ per month, and should appreciate pretty good also.
The condo has great location, and amenities, and they will be sold out in 2 months. There will be houses for years in town. I am not sure what to do on this one. Of course if I was loaded, I would just buy both. The sales people at the condos said that people from the north are buying several at a time, sight unseen for investment. I dont think they are lying on that. If I left anything out let me know, Thanks.
Heres a link to their site:
www.bellezacondos.com
Just for reference, a 1600 sq ft 3 bedroom house is minimum $250K out here. Sounds good so far, but my concerns are of course, if it is rented will it cover most of the mtg, and will it appreciate even though it is small? The other condos of lower value get $800 mth rent. After working the financing, I will probably do a 5 or 7 yr arm interest only, and let it go after that time. This will result in a pymt of between $1000-$1100. Doing a regular 30 yr loan , brings it to $1250 or so. Interest pymt is $575 on the 5 yr, with a 2nd (20%) of $240 a month. This a 100% finance. The 7 yr is $660 interest but will require 5% down, and $92 month pmi. I would like to avoid pmi, and but as a residence, but I own rental property in the same area, and they dont like that. I would like to see if they will submit it, and see what happens. The 7 yr also will reduce closing costs ($6600 ) by $1000.
For both pymts, taxes will be $191 (not this year, but est for the following year. & Assoc fees of $151 mth. No haz ins needed.
I think the 5 yr is best since there is little outlay, and no pmi. I cant see this renting for more than $800-900 a month. So it will create a small monthly loss (negative cash flow), but hopefully the appreciation will beat that out.
BTW, further in town, a 3 bedroom single family home (1600 sq ft) can be had for $150K with lower taxes, and lower hoa dues, and rent for more $$ per month, and should appreciate pretty good also.
The condo has great location, and amenities, and they will be sold out in 2 months. There will be houses for years in town. I am not sure what to do on this one. Of course if I was loaded, I would just buy both. The sales people at the condos said that people from the north are buying several at a time, sight unseen for investment. I dont think they are lying on that. If I left anything out let me know, Thanks.
