Graduate Student Looking to buy near U of Denver

[Willy702]

Getting a roomate in a complex and area like that won't be easy and I doubt you'll get anything more than $400. In that area you can get a 1 bedroom apartment for $550-600 so can't see how you get someone interested in a shared situation for not much less.

[Marissa4usa]

Originally Posted by Willy702

Getting a roomate in a complex and area like that won't be easy and I doubt you'll get anything more than $400. In that area you can get a 1 bedroom apartment for $550-600 so can't see how you get someone interested in a shared situation for not much less.

That's why I want to find out what's out there. Again, the apartment for 30k was the lowest I saw out there and is not necessarily I would go for in the end. I would also be equally happy to get a 1-bedroom apartment for a bit less than my max of 60k. I'm simply trying to figure out what would be best for my situation. I'm not looking to make big bucks (wouldn't mind it though :-) ) but the thought of renting for another 5 years is not very pleasant.

[Dorthy]

Originally Posted by Marissa4usa

Could you specify what you concerns are?
I am sorry if my questions sound naive but I'm just trying to get an understanding of what makes the most sense. the reason I don't like the idea of renting is that it will most likely mean that I will need to have roommates which in itself is not a problem but I based on what I see on craigslist it, rooms go for at least $450 to 500 and at for that price I can as well pay for a mortgage. I know there are additional costs for owning but at least I'll be the landlord. Another factor would be that I have two cats and finding a landlord and a roommate who are okay with cats is next to impossible in my experience.

My concerns are that your condo will be very difficult to re-sell once you are done with grad school and it's more then likely that it will lose value rather then gain in value. If you were willing to stay in the condo long term then it wouldn't be as much of a concern but you are looking to re-sell in a few years.

When buying a condo you have to take into account repairs to the building. Will it need a new roof anytime in the near future? Are there structural concerns, etc. If so you will be assessed and could be paying an additional $500/month on top of your mortgage. Also look into how many of the condos are rented out. I'm not sure if you can find this information but it'd be valuable to know how many are rented out to section 8. Also keep in mind that while you don't have a landlord in a condo you will have an HOA to contend with. What are the HOA fees? Does the HOA allow pets? Some do and some don't.

The condos in your price range are older buildings in less then desirable areas. The market for resale will be small. You're basically buying an apartment in a dated complex in your price range.

[EdgeCity]

I would not buy if I were you. Your time frame for recouping your investment is much too short. In today's real estate market, I would not buy unless I intended to hold for at least 10 years. Things are just too volatile.

Having been a grad student, I can tell you that your money and time is going to be tight. There are a lot of hassles with owning property.

I am a former homeowner and I am glad to be free of ownership right now. I am also a pet owner and haven't ever had a problem finding a landlord who would accept pets with a deposit.

[Marissa4usa]

Originally Posted by Dorthy

My concerns are that your condo will be very difficult to re-sell once you are done with grad school and it's more then likely that it will lose value rather then gain in value. If you were willing to stay in the condo long term then it wouldn't be as much of a concern but you are looking to re-sell in a few years.

I do not plan to stay in Denver forever, but I wouldn't be opposed to keeping the condo and renting it out if it makes sense financially.

[quote]When buying a condo you have to take into account repairs to the building. Will it need a new roof anytime in the near future? Are there structural concerns, etc. If so you will be assessed and could be paying an additional $500/month on top of your mortgage. Also look into how many of the condos are rented out. [quote]
Who would I ask about this? The HOA?

I'm not sure if you can find this information but it'd be valuable to know how many are rented out to section 8. Also keep in mind that while you don't have a landlord in a condo you will have an HOA to contend with. What are the HOA fees? Does the HOA allow pets? Some do and some don't.

Yes, I am aware of these things and what frightens me the most are the possible additional cost I can face if some major repairs need to be done. Is there are limit to how much they can make you pay per year or can they pretty much just come up with any number they feel like?

The condos in your price range are older buildings in less then desirable areas. The market for resale will be small. You're basically buying an apartment in a dated complex in your price range.

That is good advice. I guess, I don't mind the older building thing so much as I'd be willing and able to invest some effort and time into updating the inside. What I am more concerned about is the location as this is something I don't have control over. I mean, essentially, just like me the target group for 1 or 2 bedroom condos are young professionals / couples who don't have kids, so my guess would be that I don't need to buy in the most upscale neighborhood but rather an area that is in a quiet area but yet close to bars/restaurants.

Originally Posted by EdgeCity

I am a former homeowner and I am glad to be free of ownership right now. I am also a pet owner and haven't ever had a problem finding a landlord who would accept pets with a deposit.

I was referring to other roommates being okay with me having two cats and/or landlords who rent out to roommates being okay with pets. In my experience, one roommate already has pets and there can't be any additional ones or the landlord is unwilling to allow pets period.

[2bindenver]

I found 4 in the area - 1 bed 1 bath 3.5% down payment $450 ish.

[Marissa4usa]

Originally Posted by 2bindenver

I found 4 in the area - 1 bed 1 bath 3.5% down payment $450 ish.

Hi,
what exactly are you referring to? Places to buy? What area? do you have links?

Thanks!

[Dorthy]

Originally Posted by Marissa4usa

I do not plan to stay in Denver forever, but I wouldn't be opposed to keeping the condo and renting it out if it makes sense financially.

Would you be able to charge enough in rent to cover the mortgage and HOA? When renting you also have to take into consideration that for every month or day that it's not rented out you have to cover the costs. If you move far away will you pay a property management company to handle it? If so you will have to pay them as well.

Who would I ask about this? The HOA?

You could ask the HOA if they have any improvements that they foresee coming up within the next few years. They may or may not tell you and they may or may not even know.

Yes, I am aware of these things and what frightens me the most are the possible additional cost I can face if some major repairs need to be done. Is there are limit to how much they can make you pay per year or can they pretty much just come up with any number they feel like?

If majority votes in favor of improvements, yes you will have to pay whatever that cost will be.

That is good advice. I guess, I don't mind the older building thing so much as I'd be willing and able to invest some effort and time into updating the inside. What I am more concerned about is the location as this is something I don't have control over. I mean, essentially, just like me the target group for 1 or 2 bedroom condos are young professionals / couples who don't have kids, so my guess would be that I don't need to buy in the most upscale neighborhood but rather an area that is in a quiet area but yet close to bars/restaurants.

You can't afford a condo in the areas that you are describing so finding the right person to purchase your condo when you decide to move isn't going to be easy, imo.

[Justen]

Remember the HOA's in some of those places are an additional $300/month on top of your mortgage.
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[Katarina Witt]

Originally Posted by Marissa4usa

I do not plan to stay in Denver forever, but I wouldn't be opposed to keeping the condo and renting it out if it makes sense financially.

I hate to sound like a wet blanket, but that can be a real headache, especially from out of town.