Either condo or SFH has 2 ways of making money

==========================================
Address: 132B Cherry Parke, Suite B Type: Residential Style: Bedrooms: 2 Bathrooms: 1 Lot Type: Rectangular Taxes: $2,158.00 (2008) Condo Fees: $374.00 MLS®: 5609912
http://www.jessicawenstrom.com/Listing/ViewListingDetails.aspx?ListingID=9736720&Bb=YC&Cc=9736720
卖8万5000，估计租出去1100/mo。condo fee包热水，草地，铲雪等等。自己付其他的水电煤。
这样每个月就是纯收入500. 全现金的话还成，要是想refiniance，估计都没正现金流了，tnnd。
==========================================




Either condo or SFH has 2 ways of making money: cashflow or appreciation. Since appreciation is basically prediction, and nobody knows how it's going to work out, cashflow is the fundamental in rentals.

Normally, condo fee would make condos impossible to cashflow. For this condo, all expenses would include:

Income: 1100/mon

Tax: $180/mon
Condo fee: 374
insurance: 30
management: 100
vacancy: 100
repair: 50
subtotal: 830.

There are only $270 to work with. Also note, the vacancy/repair are very conservative estimates. So, if you buy something for 85K, gets $3200/year, that's less than 4% return on cash. Financing at 6% will make the deal even worse. (This even assumes no rehab needed. With 5-10K rehab, the number is even uglier.)

If there is no condo fee, monthly cashflow would be $550, which is ~8% return, a marginal deal in my area, maybe an OK deal in CA or NY, especially for someone who's willing to carry it with negative cashflow.

Hope this helps
www.sunskitehomes.com