I recently met with a client interested in purchasing an investment condominium. At a list price of $295,000.00 and rent of $1,900.00 per month, even with twenty percent down, the excepted was a negative $7,000.00 per year. We did not even factor in any money for repairs or a vacancy factor. Monthly condo assessments really eat into the costs, plus property taxes, insurance, and higher interest rates than a few years ago. You must carefully run the numbers for whatever you are considering purchasing, and make sure the investment is sound and cash flows on paper. Otherwise, you are coming of pocket each month and feeding the monster. This is not where you want to be.
Mitch
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