My Purchase today

So I made an offer to this two bedroom, 850 sqft condo. It was initially asked for $35,000, and then reduced to $29,900. I offered $25,00, and it was accepted.

Condo: $25,000

Closing cost: $1,000

Total purchase price: $26,000

Rent: $700/month

Vacancy: 10%

Property Manger: $56/month

HOA: $312 (ouch!) /month

Insurance: $40/month

Property Tax: $42/month

Repair: $50/month

Net before interest: $130/month

Interest: $65/month

Net: $65/month

Seed money: $0

Percentage of return: $65/$0 = ???

Haha, the profit is one meal for a family of four per month. I will take it since it is free.

History of the unit:

Built in 1969

Sold: July 1983 for $41,900

Sold: Dec 1987 for $32,000

Historical high: $130,000 (this is only my guess based on other sales. This one has not been sold since 1987).

This property is in Florida. All I hope for is: one day, it will recover to half of its peak price, and the rent will go back to $850/month.

 

[cultuslake]

thank you.

[5speed]

This is a very good deal! Congratulations.