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Started By
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Condo dilemma
Posted on 10/31/24 at 12:18 pm
Posted on 10/31/24 at 12:18 pm
I have a condo that a tenant just moved out of and trying to decide if it makes more financial sense to sell it or continue to rent it out. It’s not making money as a rental and units in the complex are not really selling. The biggest issue is the HOA continues to rise. When I bought the property it was $150 and now it’s $400 because of rising insurance cost each year. I feel the HOA is going to be a huge negative when trying to sell. There are several units that have been on the market for over a year in the complex.
Owe - 74K
Note - $725
HOA - $400
Listing for sale @ 110 but would realistically take anywhere around 100k
Rent - $1,100
My biggest concern is it sitting on the market for 6 months then me eventually pulling it off the market and renting it out again. I’ve already put about 5k in it since the tenant moved out and it sitting for 6 months would have me around 12k in the whole.
The condo is in Baton Rouge behind the Celtic Studios in a gated area.
Owe - 74K
Note - $725
HOA - $400
Listing for sale @ 110 but would realistically take anywhere around 100k
Rent - $1,100
My biggest concern is it sitting on the market for 6 months then me eventually pulling it off the market and renting it out again. I’ve already put about 5k in it since the tenant moved out and it sitting for 6 months would have me around 12k in the whole.
The condo is in Baton Rouge behind the Celtic Studios in a gated area.
4
Posted on 10/31/24 at 12:30 pm to Dtiger19
It sounds like you have comparisons available. Unless there's a significant added value to your property I think the question is whether you want (or think you should) sell for a lower price than the properties which aren't selling
Posted on 10/31/24 at 12:37 pm to Dtiger19
A condo association fee is not a HOA. Two different animals. But yeah, with the insurance situation and general inflation those fees have been going up.
Posted on 10/31/24 at 12:38 pm to molsusports
I definitely want to sell it and would take less than comparable units. Most comparable are listed at 110.
Posted on 10/31/24 at 8:49 pm to Dtiger19
What’s your rate on the first?
I would suggest doing a rate and term refi and doing a 10 year interest only deal. Gives you positive cash flow and allows you to ride it out. Email me if you’re interested. Happy to try and give you some guidance/help. Lnobles@redstickag.com
I would suggest doing a rate and term refi and doing a 10 year interest only deal. Gives you positive cash flow and allows you to ride it out. Email me if you’re interested. Happy to try and give you some guidance/help. Lnobles@redstickag.com
This post was edited on 10/31/24 at 8:53 pm
Posted on 11/3/24 at 9:14 am to Dtiger19
What are the terms (length) of your mortgage and how much principle are you paying off? You think it’s going to get worse and worse in regards to sale price?
You are currently losing what about $1000-1500/ year before mortgage principle? So close to breaking even?
What did you purchase for? The question is really going to be does it make sense taking the hit now or paying it down for 2-3 more years with the risks of renting and owning and maybe making some More money or less of a loss?
You are currently losing what about $1000-1500/ year before mortgage principle? So close to breaking even?
What did you purchase for? The question is really going to be does it make sense taking the hit now or paying it down for 2-3 more years with the risks of renting and owning and maybe making some More money or less of a loss?
Posted on 11/3/24 at 6:55 pm to Dtiger19
quote:
It’s not making money as a rental
It may not be making income, but it's most definitely making you money. If the options are to try to sell and cover 6-12 months of mortgage payments/HOA and sell at a discount vs. renting the property out to break even monthly while benefitting from the building equity of the home, seems to me it's a no-brainer to rent it out, from a strictly financial POV.
Now if you despise dealing with renters? I guess it depends if the squeeze from selling is worth the juice of not having to deal with a renter.
This post was edited on 11/3/24 at 6:56 pm
Posted on 11/4/24 at 8:33 am to mmmmmbeeer
You can also sell it contingent upon the renters lease being followed as well as renting it contingent upon allowing buyers to view the property.
Its not perfectly ideal, but also not a major deal breaker if you think its going to sit for 6-12 months on the market.
Its not perfectly ideal, but also not a major deal breaker if you think its going to sit for 6-12 months on the market.
Posted on 11/4/24 at 10:10 am to baldona
Rate is 4.875 and have about 18 yrs left.
Originally purchased for 110,900 but refinanced it a couple years later which added to the balance.
Principal is going down about $300 a month. The condo value hasn’t went up so I don’t see that changing in the near future. All said and done I’m probably coming out ~ $1000 a year ahead renting it but that depends on it staying rented the entire time.
Originally purchased for 110,900 but refinanced it a couple years later which added to the balance.
Principal is going down about $300 a month. The condo value hasn’t went up so I don’t see that changing in the near future. All said and done I’m probably coming out ~ $1000 a year ahead renting it but that depends on it staying rented the entire time.
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