Would you rent out a condo at a slight cash flow deficit? I have a unit that I redid on a 15Y mortgage that ends up being all-in $4000. Principal payments are ~$800pm month 1 (7% APR)

I think I can rent it for $3500-3600 and feel comfortable with a $400-500pm added “expense”

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MD1 makes a good point. Make sure that 4k is all in as a landlord, not a primary residence. It sounds like you're "spending" 6k a year to keep the place. Does your resell value go up more than that a year? If not, set a break point for yourself and assume conservative increases in HOA/insurances/maintenance/etc

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Does 4k pm include repairs and maintenance? Is there any buffer built in for turnovers?
I’ve experienced high increases in insurance and taxes the last few years so know that those will only go up, not down.
Not sure I’d rent out / purchase a condo period as there are so many unknowns when someone else owns all the rules. Plus I’ve seen some nightmare stories of condo special assessments that cause costs to skyrocket.

Which city

Chicago

I mean do you want to rent it out, and can you afford to? That’s really the two questions.

On a 15 yr mortgage, I’d be fine with that, especially at 7%. When interest rates decline after our president successfully initiates a recession in 3 to 6 months, you’ll be able to get a rate in the 5’s and you’ll be cashflow positive before you have to renew your current tenants.

$4k per month tells me you’re likely in a HCOL city, which will typically out-appreciate middle America.

Chicago

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