02/11/2023
What makes a ‘good’ deal?
Buying real estate is fun because of the brick and mortar aspect of parking your money somewhere. Instead of a stock certificate, which I guess is technically tangible, real estate also provides shelter and utility while preserving your cash.
A lot of clients ask us if we think the property we are looking at is a good deal and it’s not always just about the purchase price. Here are three items to consider:
1) Is the location helpful to the lifestyle you want to live or the community you want to serve?
2) If you’re financing, do all of the monthly expenses fit in your budget?
3) What’s the current condition of the property and what can be expected for maintenance?
In the case of condos - special assessments can seemingly crop up out of nowhere and obliterate your budget and/or cash flow if buying an income property. Speaking with the Association Board can give you an indication of their plans, and inspecting the property will give you great in-site about what’s to come. Usually roof, siding, and driveways are the big capital expenses that can necessitate special assessments for small condo associations.
We manage small condo associations and know that the trick is handling the small repairs to prevent the big ones from coming too soon.
So when we see a board managing the association well, we know we can return a similar question back to our buyer with confidence, and ask them - what does your heart tell you when you walk in the door? Because that’s often what matters most!
