Invest in a rental property now?
I have some savings sitting around and was looking around for a while and found this 10y/o 4b3b condo listed for 310k. HOA $567. I lived in this area for ~4 years and I know this location is pretty good. Next to a big University with increasing class size every year, very close&easy commute to downtown, great public transportation, and 2 blocks to a new grocery store. I estimate monthly rent to be $2800-3000 if I rent the entire unit to students. Since I'm in my early 20s and single, I'm also thinking about living in the master room there for 2 years to get the 250k sales tax exclusion in the future. Is it a good idea to enter the housing market rn?
Wait a few months and reassess if this stock market correction will bleed into other asset classes, like real estate. Standing still for a few months won’t materially impact your opportunity to enter the real estate market. There’s always some buyers and sellers— wait for the right opportunity. You think you found the perfect property but reality is there will always be new listings.
I'd guess the stock price drops right now will affect a lot in regions like bay area or Seattle, but I live in a city with very few of those companies giving RSUs. Wonder if stock market would affect real estate much in this region. I thought the further increase in interest rate next year would affect though.
In my view, there’s multiple factors that are gonna fork up housing good: - rising interest rates (as you mention) - decreased foreign investment in the American real estate market (Chinas economic growth is coming to a stand still) - decreased tax benefits of home ownership (SALT deduction capped at 10k) - decreased stock valuations (people can’t / are less willing to liquidate stocks for down payments) - (speculative): people buying at these high prices will foreclose if their RSUs deflate and aren’t enough to make their mortgage payments; they could be over leveraged and end up in foreclosure The culmination of all of these factors could seriously impact prices.
Lol no.
Students will be more likely to trash the place or not pay rent timely. How does the HOA feel about renting to four or more students? HOA dues take a big chunk out of revenue.
As stated, there is no rental restriction in this building. Pretty much all who live there are undergrad&grad students who aren't very into party as there are other locations much preferred by party students. Yeah I know HOA is expensive but condos do put much less work on me.
If possible you can pay 100k more and get a single family home instead in the area. I hate the hoa fees which stays for ever.
High HOA homes under-appreciate.
Maybe 4 years late
You’ve not shared nearly enough details for any viable analysis. You need more due diligence. Cash flow analysis. Market analysis. Your cash reserve analysis. Alternate use of funds etc. Cheers
For real? You think you can pull 2800-3k in rent from a $310k property? And you’re asking us if it’s okay? Wow. What are you waiting for?
Please can you share the location details?
Yes. So I can buy the property before the OP does.
I've done this before. Feel free to DM me with more details and I'll share my exp
Are those HOA dues monthly?!
Yes
Those HOA fees are insane - do they include any utilities? I recommend looking elsewhere, and wait 18 months prices will fall 20%. Peak was July 2018.