After sitting on the sidelines for a few years, I’ve decided that this is the year I’m going to start personally investing in real estate. I’ll be sharing my thoughts and learnings as I go through the process.
This past week, I think I may have found a good condo property. There are a few issues though. It’s a small building and 40% of the units are currently rented. If I buy, the rental-to-owner ratio would go over 50%, potentially causing issues in getting a mortgage. However, I ran the financial analysis and the numbers are the best I’ve seen yet. Positive cash flow and slightly negative net income. The building is OLD, so I’ll need to insure that there aren’t going to be any special assessments soon, and that the HOA fees won’t rise considerably.
While I’ve built my own investment model through Excel (yes, I am a financial geek), here is a good online financial analysis tool that you may find useful…Investment Property Calculator.
Stay tuned for more exciting adventures as I continue on my path to becoming a landlord.