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Condo #2 is rented!

July 15th, 2005 by Kenric

I found a renter for condo #2! It is very tempting to rent to someone with poor credit, but I held out and got a tenant with great credit! She had no problem with the security deposit or rent. I had a couple people with some poor credit, jail time, offered all cash deposits the same day.

Since I lived in the condo, I had rehabbed it a bit. New kitchen and bathrooms. I put in about $5,000 into the condo so my returns on this one aren’t as great.

$73,250 purchase price
$14,650 down payment
$58,600 mortgage (6% int only)
$3,000 closing costs
$5,000 rehab costs

$850/mo rent
$313/mo HOA
$20/mo insurance$
40/mo taxes
$293/mo mortgage

Cashflow = $850 – $313 – $20 – $40 – $293 = $184
COCR = $2,204 / ($14,650 + $3,000 +$5,000) = 9.7%

I also decided to take a HELOC out before I moved out. I got a 90% HELOC at prime – .25%. My condo appraised at $140,000 which enabled me to take out over $60,000.

Posted in Real Estate | 2 Comments »
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