Investors, what do you say? Do the numbers make sense for my first investment property?

Hello! Found a pretty cute condo I like today. Saw too many gnats in there but the HOA covers pest control so I’m hoping if that’s the only issue, it’s fixable. It’s in a college town area, likely mostly investor owned and student rented. However, not sure if it’s worth it given the numbers. Just gonna lay it all out here. I could give budget details and everything if requested. I’m in Louisiana near one of the big universities.

2 bedrooms 2.5 bathrooms. Asking price $119,500. Potential offer: $127,000 at the max with a 5-6% interest rate. $170 a month for HOA. I have $15,000 total to put towards a home. Didn’t find out a lot about the rental potential but MLS shows that the owner rented it for $850 a month but my agent says she saw a similar property that recently rented for $1,095. I’d live in one room for a year or two and only rent out the second, before moving out and renting the whole unit.

Basically, it doesn’t appear to cash flow and doesn’t appear it would yield a good profit if sold. But my agent pointed out that with my budget, i won’t be getting a drastic return on my first property but would save a lot more than what I’m spending in rent. Good point but should I hold off for something better?

submitted by /u/grsdjotc
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Hello! Found a pretty cute condo I like today. Saw too many gnats in there but the HOA covers pest control so I’m hoping if that’s the only issue, it’s fixable. It’s in a college town area, likely mostly investor owned and student rented. However, not sure if it’s worth it given the numbers. Just gonna lay it all out here. I could give budget details and everything if requested. I’m in Louisiana near one of the big universities. 2 bedrooms 2.5 bathrooms. Asking price $119,500. Potential offer: $127,000 at the max with a 5-6% interest rate. $170 a month for HOA. I have $15,000 total to put towards a home. Didn’t find out a lot about the rental potential but MLS shows that the owner rented it for $850 a month but my agent says she saw a similar property that recently rented for $1,095. I’d live in one room for a year or two and only rent out the second, before moving out and renting the whole unit. Basically, it doesn’t appear to cash flow and doesn’t appear it would yield a good profit if sold. But my agent pointed out that with my budget, i won’t be getting a drastic return on my first property but would save a lot more than what I’m spending in rent. Good point but should I hold off for something better? submitted by /u/grsdjotc [link] [comments]

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