I am buying a condo on the water for a very nice price.
How does insurance work with the condo units? Are they apart of the common charges? I’m going to find this out, I’m just writing it in here because the thought just crosed my mind. The basics of the deal are pretty good.
The unit has a WATERVIEW and the entire complex is on WATERFRONT LAND. The unit basically faces a courtyard and if you turn left outside the sliding glass doors on the patieo, the water is 200 feet away. It’s a dock slip with boats. There’s also a slip available for 20,000.
So I’m grabbing it for 160,000. Putting 75,000 down.
The rents are $1200 and it was rented all of last year. The condo’s are 78 units with just about 55% being owner occup with less than 3 of the units being Section 8 and they’re the front units. Board members who I’ve talked to allowed one of the investors to rent to them in the buildings near the street - not waterview. Almost 50% of them are occupied by about 6 investors with each of them owning like 7 units and a few of the investors own them for summers, keep them empty during winter.
What do you all think? Those are the basics. LLC is purchasing and I’m signing a personal guarantee, but loan will show on LLC. I’m thinking a 7.5% commercial loan? or is that too low. I have fantastic credit and putting down well over 30%. Money is coming from family and myself.