i was wondering if it was a good ideal to get a townhouse for 700,000 in the bay area with a 80,000 incentive 2 bed 2 1/2 bath 2 car garage 3 floors
What is the appraised value versus the sales price. Are you going to be occupying it or renting it out? If you are renting it what are the market rates in the area? Need to provide more information about the deal.
How is anyone on this board supposed to give you any sort of idea what it’s worth? For all we know $700k is a steal or a massive price gouging. You need to compare it to comparable sales in the area. How much did similar size townhouses with similar features in the same area go for? How much did they actually SELL for, not listing price. To be accurate you need to check comps that are only a few months old, nothing more than that.
The Bay??? Tampa Bay? Green Bay? Hudson Bay? Montego Bay? SF Bay?
Around the SF Bay area, prices can vary widely up and down the area…I’ll bet you find different prices between the 'hood in Oakland and Knob Hill in SF…?
the townhouse is in the oakland hills they just finished the town house that i want to get. The other townhomes are 715,000 and the 3 bedrooms are going for 800,00 they all sold within a couple of months theres about 3 more left. They havent build the recreation center or the community park yet there still in progress it should be done sometime next year and they are still building townhomes around the other townhomes that I want to get. I was thinking about doing a lease option after i purchase the townhome. The other town homes are rented for about 2,500 for the 2 bed 2 1/2 bath 2car garage and the 3 bedrooms are going for 2,900. im not sure about the appraisal I need the check into it.
No this is not a good deal.
Your plan to lease option for 2500.00 would be financially hazardous—the PI (principal & interest) payment on a loan of this size would be between 4.5K-5K per month (depending on your down payment)…
A purchase price of approx. 340K would throw off a PI payment of 2500.00—With insurance and taxes (not to mention the operating expenses of being a landlord), your first deal would most likely be your last.
Look for investment opportunities with greater discounts to current market value—a 80K incentive only equates to a 11% discount to current market value and is not worth the flip (or rent).