I have several properties and they all have to generate positive cash flow to be considered “good”.
In regards to 1 bedroom, of course the larger size can genrate larger rents. In my case, I even own a “studio”, which turns out positive cash flow because it is in a high rent district here in Boston.
I would recommend continuing to look for “positive cash flow opportunities” or get the condo at a lower price.
I’m looking at a 1 BR condo in upstate NY with an asking price of $82,000. The asking price is true to market. I can rent it for $925 per month. After doing an analysis, my mortgage would be $472, taxes $1600 yr., maintenance $177 (inc. HT/HW), insurance $35. Complex has little to no history of additional assesments. Adding all other expenses gives me a negative cash flow of $31 per month.
Does anyone think this is too risky considering its a condo and not a SFH?
This does not sound like a bargain buy. Could you find something better? Unless you have looked at at least 100 properties, you probably are not ready to be buying yet.
Good Investing*************Ron Starr**************
I started in condos. And I have made some pretty good money on them. I still own one to this day.
I myself will not purchase a property unless I can pull in a positive cash flow from it.
In my opinion that maintenance fee eats way to much into your cash flow.
And just because there is not a history of assesments does not mean there will never be any in the near future. Trust me on this one. I learned my lesson the hard way.
Say next year the raise the maint. fee? Then you will be pulling in more of a negative.
Ivan, please dont misunderstand me I have nothing against condos…like I said i started in REI that way.
If you want to get into condo investing try to find ones that you can pull a positive cash flow just in case there is a maint. fee increase or special assesment. Also look over your “docs” with a fine tooth comb.
And always think resale. 2 or 3 bedroom condos sell better than a 1.
Well, I will make this short and sweet. NO. I wouldn’t touch this because of where I am at. I don’t touch anything less that a 3 bedroom SFH. But I don’t know the NY market. I live in Las Vegas and a 1 br condo NO WAY.
It might work in NY considering all the 1 br apt in NY and single people I guess, but I don’t know. Personally I think the NY market would be a little challenging.