The condo next door from us has been on sale for awhile. It actually almost sold at one point but that must have fallen through because the for sale sign is back up. I've been really thinking about purchasing it and renting it out. But because it would be an investment property, the bank is requiring us to put down 20% plus have 6 months of mortgage payments to cover both our mortgage and the investment condo's mortgage. I'm ok with having the 6 months mortgage payments. I like having money in the bank. I'm having a hard time thinking of parting with the 20% down payment.
My husband really doesn't have much interest in financial matters and although I think it makes him a little nervous, if I wanted to buy this condo he would go along with it. I've contacted a friend of my sister's who is a realtor to get her take on it.
The first hurdle was finding financing. I didn't try to get pre-approved because I didn't want to pay the $125 fee until I know for sure that I want to go forward with this. I am only considering this specific condo because it is right next door and we have lived here a long time. We are familiar with the building and the condo association.
We have a great condo association. They aren't nit picky like you hear about sometimes. In the 8 years we lived here, our HOA fees have only increase once and it was only $10 a month. We have never been asked for anymore money for anything else.
The condo is listed for about $12,000 more than what I feel the condo is worth so that's a big hurdle we have to get past if we decide to move forward. I think they are basing the price on what was paid for the condo, but we recently had our condo appraised and it was appraised at $12000 less than their asking price and we've done some major improvements in the last two years.
So this has been what has been on my mind all day. I wanted to do this a while ago but my local bank told us we had to put 30% down which was too much for us. But I checked with a credit union we use also and their terms are more doable.