I live in Tallahasse (the capital of Florida)and have the opportunity to purchase a condo downtown in a very desirable location. They are pre-construction prices. Here is my dilemna: There is a one bedroom that has a good view and decent price. 219K (776 sq. ft. Maintenance fee is 235.00 a month. There is a 2/2 with no view for 271K (about 1300 sq.ft), fees 400 a month. I will need to plop down approx 45K within 90 days and then close next March. I have about 100K in savings, 160K in home equity. Bring home paycheck is 500.00 a week. Good investment. 2 other high rises recently built are sold out and their return is 25% if sold today. Have 800.00 month profit from income from rentals. Any suggestions? Thanks. Val
It appears this is purely an investment property for you. So do the numbers to understand what your cash flow will be (rent, vacancy, maintenance, management, etc.). If it's not positive with 20% down, prefereably less, walk away. If it is continue doing more due diligence. Do not count on any short term appreciation and be aware of what you will do should prices decline significantly. Great appreciation for the last few years does not equal great appreciation for the next few. In January of 2000 Cisco shares were a "great investment" having doubled almost every year for the previous 5+ years, not so much from March of 2000 onwards. Yes, real estate can and has declined 30% in price over a couple year period. Wether it will go down or up in Tallahasse, I have no idea, but it doesn't sound like you do either.
yes -- read this article from today's New York Times and count to ten before you decide to buy anythinghttp://www.nytimes.com/2006/02/17/business/17investors.html?8hpib
yes -- read this article from today's New York Times and count to ten before you decide to buy anythinghttp://www.nytimes.com/2006/02/17/business/17investors.html?8hpib Oh boy. Just when I thought it was safe to go in the water... I only know that there were no condos in Tally 3 years ago. There are now 2 that have recently been built (and sold out). One is FSU/sports fans related and the other is more retirees. This one going up is geared toward professionals, legislators, etc. There seems to be a need for housing already as the homes in and around the downtown area are taken by college students. There really is not residences for the lobbyists, legislators, etc. that come in twice a year. Not to mention the crazies that are FSU fanatics. I really need something for myself to live in downtown. That is why I was debating over the two bedroom or one. Thinking I could "rent" one room. Unless a deal is a no-brainer, I just waffle on things like this. Thanks for all advice. I sure need it!!
The way i have always made this kind of decision is to ask:"Which unit would I rather live in, if I had to live in this building?This gives you the maximium options. If you can't rent it, or sell it at a profit, you can live there and sell your current home (hopefully at a profit).
Now is the begining of the time where "cash is king". Those investors (NOT speculators) will have the pick of the litter in various markets as the "speculators" try to get out of crushing debt loads, negative cash flow and excessive inventory for sael.So, where to put this cash down? Let's start a conversation about where we "investors" think the market will be able to support our investments. I plan on either doing a 1031 exchange of a townhome I have in Palm Desert Ca in the next 12-18 months or sucking equity out of both properties I have and purchasing outright a new investment. But where?Rents are soft, rates are going up..... cat
Here is my dilemna: There is a one bedroom that has a good view and decent price. 219K (776 sq. ft. Maintenance fee is 235.00 a month. There is a 2/2 with no view for 271K (about 1300 sq.ft), fees 400 a month. I will need to plop down approx 45K within 90 days and then close next March. If you're talking rental, 2 BR are ALWAYS better than one. The price differential for the extra space is disproporionately small, IMO, and it's always easier to rent and sell more rooms.Especially in a student area - students tend to save money with roommates. The view is always a good selling point for the right tenant, but the extra room is a better selling point with most tenants.Of course, that's the subjective part of the equation. Listen to Sailrmac and others for the objective part and do the numbers.good luck
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