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/u/cpa_pm
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Purchased class C 1b/1b condo in 2014 for $140k. Built in 1977. 640 sq ft
Rented over the years and did need to move back to it for reasons. Our CPA gave a thumbs up.
We now qualify for the 2/5 homeowners exclusion
Learned last month that none of the units have insulation and stairs aren't up to code. HOA will be pushing through a $1.6mil loan to put in insulation, waterproofing, and exterior, redo some stairs, and fund the HOA reserves. The impact is that we can pay $33k now. Increases to HOA dues are unavoidable and will increase 20% each year ($220/month currently)
Major repairs needed: expecting the HVAC to crap out, it's original. The kitchen is rough from being original, quotes to upgrade is $14k
Market rent is $2,000 at the moment, PM company manages for 10% rent. Realtor thinks $275k list price and as is and can do 2% commission.
Current mortgage + escrow: $750/ month, HOA $220, 3.2% interest rate.
It's not a great unit and always has issues. We think selling is the best option at the moment and buy a SFR with the funds.
HOA is pretty terrible about managing money. Felt that selling was the best option until this afternoon and I wondered if the monthly cash flow would make sense. However, any major repair could wipe positive cash flow for an entire year.
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Sell or rent out Class C condo
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