Good Deal Or Not?
I have the opportunity to purchase a 1br condo in a small midwest college town for 25k with 20% down at 8%, buyer pays all closing costs. HOA is $120. Rent is $400 per month -10% for property management fees. Is this worth the effort?
Personally, I'd pass on this one. There is not enough money in it.
Here's a link to a good properyt analyzer that may help you on future deals.
http://comm.thecreativeinvestor.com/modules.php?name=Tools&op=ProForma&FMV=360,000&PurPrice=360,000
Good Luck!
$400 rent for a 25k condo is not a bad deal. When you add that 10% and that $120 a month, it takes it to a no-deal in my opinion.