Personally, I do not like condo. But it is all depending on your situation and your personal choice. Like this (compare the current value), if you have 150K cash, you can buy 1 house and 3 condos. The house is really close to campus and it is very easy to rent out. The condo is 1.2 mile from campus and it is easy to rent out. No management and maintenance fee are counted in this table. Rate 4.75% is for investment and 4.5% (or 4.25%) is for 2nd home.
| House (2012 value) | 6bd/3ba | 2100sf | ||||||
| Cost | 525000 | Rates | Year | Monthly Cost | Monthly Rent | Addition Cost | ||
| 25% Down payment | 131250 | 4200 | ||||||
| Mortgage | 393750 | 4.75 | 2054 | 4000 | closing cost | |||
| Tax | 6300 | 525 | ||||||
| Mello-Roos | 0 | |||||||
| Total Cash | Insurance | 650 | 54 | |||||
| 135250 | HOA | 0 | ||||||
| Management | 0 | |||||||
| Cable, Phone & Internet | 0 | Cash Flow | ||||||
| Total | 2633 | 1567 | ||||||
| Mortgage | Rate | Principal (1st year Ave) | P&I | Total Cost/month | Minimal Rent | Cash Flow | Rent Target | Cash Flow Target |
| 314250 | 4.375 | 506 | 2054 | $2,633 | $4,000 | $1,367 | $4,400 | $1,767 |
| Current rent cash flow % | 13.90 | |||||||
| Total cash flow % | 18.39 | plus principal |
| Condo (bought 2012) | 2bd/2ba | ||||||
| Sale Price | 25% DP | Loan | Rate | Monthly P&I | Principal(1st year Ave) | HOA | Insurance |
| $172,000 | $43,000 | $129,000 | $4.5 | $654 | $173.00 | $298 | $30 |
| other cost | $3,000 | Tax | Total Cost/month | Rent | Cash Flow | ||
| Total cost | $46,000 | 157.67 | 1139.67 | 1500.00 | 360.33 | ||
| Current rent cash flow % | 9.40 | ||||||
| Total cash flow % | 14.88 | plus principal |
| House (bought 2010) | 6bd/3ba | 2100sf | ||||||
| Cost | 419000 | Rates | Year | Monthly Cost | Monthly Rent | Addition Cost | ||
| 25% Down payment | 104750 | 4200 | 10000 | Remodeling | ||||
| Mortgage | 314250 | 4.375 | 1569 | 4000 | closing cost | |||
| Tax | 5028 | 419 | ||||||
| Mello-Roos | 0 | 5499 | 1.75% point | |||||
| Total Cash | Insurance | 600 | 50 | |||||
| 124249 | HOA | 0 | ||||||
| Management | 0 | |||||||
| Cable, Phone & Internet | 0 | Cash Flow | ||||||
| Total | 2038 | 2162 | ||||||
| Mortgage | Rate | Principal (1st year Ave) | P&I | Total Cost/month | Minimal Rent | Cash Flow | Rent Target | Cash Flow Target |
| 314250 | 4.375 | 432 | 1569 | $2,038 | $4,000 | $1,962 | $4,400 | $2,362 |
| Current rent cash flow % | 20.88 | |||||||
| Total cash flow % | 25.05 | plus principal |
