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Old 12-15-2015, 03:10 PM
 
5,993 posts, read 2,469,686 times
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Yea, if you buy with cash then I would want a unit you could rent out. I would walk away from this one unless its plush to the nth degree and you will be living the high life for the next 2 years.


Quote:
Originally Posted by DelightfulNYC View Post
Flip side is 100% of units have sold for cash in my building since 2009. Which means every buyer since 2009 will never be in a forced sale, they all can rent out at a profit.

The Pre-2009 folks we had 2-3 forced sales to cash buyers, folks have modified or paid down mortgages or refinanced.

And cash out mortgage, home equity loans or HELOCs are dead in my building.

At the rate we are going on fixing finances etc. by 2018 we will once again by mortgage able and FHA approved. But a ten years break in folks taking out mortgages or taking loans vs homes really will help building greatly in next down market or if rates shoot up (hurts folks with adjust mortgages).

I think an all cash building has certain merits. Much easy to run and manage at association level. Heck of a lot less paperwork for us and cash buyers pay maint if not we foreclose and are first on line ahead of all and any other liens.

My town re-asesses property every four years. Next assessment is 1-1-2018. We should announce our new eligibility for mortgages when our 2017 financials go out. It may raise resale values. But as long as those values dont rise until after 1-1-2018 we should be good. High property taxes will kill gains from FHA financing.

And last boom when units went from 200K to 400K maint quickly went from 300 to 500 quickly as when units were rising in value $2,000 a month no one watched the maint and a lot of stupid money was wasted.

When boom busted, we were stuck with higher property tax based on those bubble sales and higher maint. This bubble we want to avoid it happening again.
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Old 12-15-2015, 08:30 PM
 
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How about adding the renter to the deed and given them %1 of the property? Then you can rent your unit whoever is on the deed right ? or does it has to be a certain percentage?
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Old 12-15-2015, 11:25 PM
 
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The level of trust required to do that would be very very high. When you have tenants you want the ability to throw them out as fast as the law allows if things go awry.


Quote:
Originally Posted by nyxocology View Post
How about adding the renter to the deed and given them %1 of the property? Then you can rent your unit whoever is on the deed right ? or does it has to be a certain percentage?
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Old 12-16-2015, 06:52 AM
 
1,040 posts, read 692,438 times
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Originally Posted by pittsflyer View Post
Yea, if you buy with cash then I would want a unit you could rent out. I would walk away from this one unless its plush to the nth degree and you will be living the high life for the next 2 years.
What does plush to nth degree mean. I like my condo complex as it has zero amenities. I was able to fix the financial problems within two years on board. But main reason is windows, HVAC, decks, doors are all owners responsibility. Outdoor parking is a tar lot. We have zero indoor common areas other than five mechancial rooms. But in mechanical rooms are owners water heaters, water meters, etc that association is no responsible.

it is garden apt style so everyone exits in and out of their own unit so no lobby to maintain. There is grass in front of all the units we mow, cant leave stuff there, but is great as kids do cartwheels, you can throw a lawnchair out or folding table if having a party.

Some condos nearby with underground parking, playgrounds, pools, gyms, clubhouses and lobbies with furniture often get hit with big assessments every few years. And stuff like security and staff is expensive. For instance we have zero staff. No xmas tips, no bonuses, no OT.

So why did I buy. Beach is one block from unit, flood insurance is in maint, I have a park across street, a boardwalk down block and public tennis courts a few houses down.

Condos are interesting You have to buy what works for you.

I rent unit out mainly as so does 30-40% of building. The renters on average are a good 30 years younger than primary owners, some bought when building opened in 1979 and those folks between 70-82.

Amenities would be expensive to maintain. And odd part is owners will pay and not enjoy them. I am sure my 82 year old neighbor would love paying higher maint so the two couples who rent below him in their 30s can enjoy them.

Condos near me next to a park, pool beach are usually in demand. One near me has $350 maint on two bedroom condos. It is actually next door to library and around corner from town pool, ice skating rink, has a planet fitness across street and short walk to beach. In effect it has amenities of a $800 a month maint building simply because it was built next door to great amenities.
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Old 12-16-2015, 06:54 AM
 
1,040 posts, read 692,438 times
Reputation: 817
Quote:
Originally Posted by pittsflyer View Post
The level of trust required to do that would be very very high. When you have tenants you want the ability to throw them out as fast as the law allows if things go awry.
Say the tenant is your lover and you are gay. Problem solved.
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