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Does Deloitte generally pay well?
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Coach
Quick math says it would make sense, as long as you have a buffer for repairs, maintenance and renovations (to keep it competitive)… but you want to make sure your CapRate is >5%…
So what are the taxes? Would you pay cash of take a small mortgage? If you take the seller financing, what’s the rate past the 2 years?
Why it could make sense? If you already own another property in the same area, you can start building a separate little portfolio of properties in that community, and wrap it inside an LLC, with each unit as another LLC…
$728 per month for HOA ?
South Florida - half is for insurance
The HOA will also come up. HOAs make any deal un investable due to their power and costs permanently going up by 2 digits percent per year.
In my area HOA is part of life - that's just how construction is generally planned - I guess the municipalities incentivize it too save on maintenance like landscaping, cleaning, etc.
Cap rate comes up to around 6%.
Taxes are $3,300.
I didn't discuss the details of the seller financing, assuming it was intended to be straight line pay off in full in 2 years.
If you can make a profit, then do it. HOA fees won’t go up by that much
Subject Expert
Sounds like the complex might be unwarrantable, which is why seller financing is offered.
I wouldn’t invest in Florida condos at all. Even if it cashflows on paper, most of the complexes aren’t ran well which is why they all end up unwarrantable with high assessments.
Subject Expert
The term “unwarrantable” is a very specific term used in mortgage lending. It means that you can’t get a Fannie / Freddie loan. There’s a specific “blacklist” from these lenders. If you’re on the blacklist, selling the property can be very tricky to any non-cash buyers.