July 8, 2005
Great deal if you can fit 6 people into this 3br/2ba condo!
A friend of mine used to live in the unit below this one:
Wow! $975,000 for a 3 bedroom/2 bathroom condo!
Now, let’s say that you wanted to buy this unit, the final price comes out to be $1,000,000, you put 10% down, and you use an interest-only loan. A quick web-calculator says this:
Interest-Only Payment: $4,687.50
Fully Amortized Payment: $5,541.45
But here’s the catch - that friend of mine living one floor below? Well, he and his 2 friends were only paying a combined $2600 a month.
So here’s the deal - you buy this condo, rent it out for $2800 a month ($200 more because its on the next floor), and then chip in another $1887 a month… and… well… uh…
Yeah.
UPDATE: Oops the actualy rent amount was $2500, not $2600. This makes recouping your mortgage costs even harder. Maybe a negative amortization mortgage might work better…
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