Home Buying in San Jose>Question Details

leo_vishnevs…, Home Buyer in San Jose, CA

Looking at buying a Condo in Bay Area

Asked by leo_vishnevskiy, San Jose, CA Sat Jul 13, 2013

The short term goal is to save money on rent, as a decent 1-bedroom right now is renting for $1550-1750, and mortgage hoa fees will be couple hundred dollars less. The question will be for my long term goal (2 years down the line) of converting the Condo into a rental property. Would you recommend I spend the extra 25k-75k and go with a 2-bedroom Condo to maximize my positive cash flow (rent vs. mort.) OR is the cash flow difference insignificant for a 1-bedroom condo? What are the positives and negatives of owning a 1-bdrm condo over a 2?

Thanks in advance for any help!

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Answers

8
We can certainly help you out. You can check us out at http://www.TheMortgageOutlet.com and give us a call. One of our loan officers will look at your situation and present you with some options.
0 votes Thank Flag Link Mon Aug 5, 2013
If you spend more to buy a property, the expense should have some relation to the value of the property. A more valuable property should rent for more than a less valuable property.

The property with a greater value at acquisition should also have greater value as an investment asset and at disposition.

By the way…2 years is not exactly “long term”.
0 votes Thank Flag Link Sun Jul 14, 2013
Go with 2 bedrooms - you will a much larger pool of potential tenants.
0 votes Thank Flag Link Sat Jul 13, 2013
I would personally prefer a two bed over a one bed, in terms of usability as well as value for money as well as resale value.
It is important to go over all the info in terms of HOA docs that cover the by-laws, CC&Rs, etc. b4 signing on the dotted line.
I will be happy to meet for a half hour consult at my office. Good luck with your search.
0 votes Thank Flag Link Sat Jul 13, 2013
Hi Leo,
There are many options that would answer your question. A two bedroom unit would be more marketable in the future over a one bedroom. There are different kinds of condo/townhouse options.
It is a good idea to enlist professional help, the best way to do that is to give me a call.
Thanks!
Julie Priest Keil
Realtor
Ventura Barnett Properties
Better Homes & Gardens Realty
1408 529 1482 cell
0 votes Thank Flag Link Sat Jul 13, 2013
Hi Leo,

You can research by visiting my website, use "Find A Home", which is connected to Pro-MLS, to search for ALL current Active Listings on the market.
http://lamsondang.com

Enjoy and Best wishes,

Lamson Dang
R.E. Broker
Web Reference: http://lamsondang.com
0 votes Thank Flag Link Sat Jul 13, 2013
If you purchase a condo as owner occupied you will need to read the HOA rules on if and when you could rent it out.

A 2 bedroom is advisable if you have the income to purchase it. There is a good website to verify the rents for various areas. http://www.RentOmeter.com

Cash flow is going to be dependent upon the amount you put down. Each potential purchase will need to be looked at on an individual basis, as rent income, and price of condo will vary.
Web Reference: http://www.terrivellios.com
0 votes Thank Flag Link Sat Jul 13, 2013
I think you might be in store for an unpleasant surprise about;
The Cost of the Condos,
The amount of the HOA fees,
The HOA allowing you to rent it out.
Stay tuned.
0 votes Thank Flag Link Sat Jul 13, 2013
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