RRZ.com Investments

Property Investment?

I am buying this condo for $125,000 and it is tenant occupied. Then tenant is paying $1150.00 rent and common charges is $435. Do you think is a good idea?

Public Comments

1. A mortgage for that property would be around 750 with ten percent down. I would ask the tenant how long they had been living in the place and I would like to see the lease as well. You are going to break even after you take out the charges and a normal return on investment with real estate is ten percent. that is the money you put down you should earn ten percent of that. I would probably try to get it for a little less because you also have to keep in mind that this place will not stay rented 100% of the time. good luck.
2. A good idea of what? Your purchase, the rental rate, the tenant paying the common charges, buying investment property, or what? Buying GOOD investment property IS a good idea if you buy at the right price, in the right area, at the right time, with the right financing, for the right price. Leasing to tenants is a good idea if there is a solid written rental agreement, the right rental terms, and the right cashflow to fit your investment plan. Allowing the tenant t pay common charges is a good idea IF they pay the charges, you have a way to verify that these charges have been paid on time, and it helps your cashflow. Ask a more specific question, get a more specific answer.
3. Check to see what the current rent would be on the condo. I was looking at an area to buy a rental and the rents had dropped 100-200 dollars within about 6 months. There were so many homes for sale that the owners turned into rentals. Supply and demand. Once the current tenant lease is up, you could be faced with the same issue.