Condo for Investment, need advice

**5-star** · 10-10-2009, 12:56 AM

Hey everybody,
First and foremost, Thank you.

I'm a full time student here in Orlando,Fl. The rental rate for a decent 1/1 seems to range from $700-900 a month depending on the area. I'll be renting this out to others. I've been able to find $45k+ condos (regardless of the astronomical prices they sold for a couple of years ago) close to the 30s.. I figure if can find sniff out a foreclosure for about 25k, move in ready, than I'll pay it off cash by taking out extra school loans, and after h.o.a/insurance/tax, i should make a good 3-500 a month profit. yes?

-I want to pay it cash because i have no credit i figure nobody will loan me money (unless its for school which is what I'm taking advantage of)
-I want a condo over a home because its easy to maintain.

Please. I must be missing something. Tell me what I'm being ignorant/naive about. My parents are against it because they want me to pay attention to school, but they are very scared of everything in life, and never take advantage of good opportunities, a path I want to embrace, instead of avoid.

Thank you once again!!

**5-star** · 10-10-2009, 03:14 PM

Nobody has an opinion?

I want to take advantage of this within the next 22 days so i can qualify for the 10% credit obama is giving us.

**Condos Florida** · 10-16-2009, 02:58 AM

yes i can understand that you have the great opportunity but dont ignore your parents coz they have great exp about everything.

**SearchTheJungle** · 10-16-2009, 07:55 AM

I have a few thoughts:

1. Is it legal (ethical) to take out student loans and use them to buy a condo?

2. If these homes are such a good deal, why hasn't an established investor with cash already snapped them up?

3. What is the rental market like in the area that your condo is in?

4. How will you afford repairs and unforseen expenses as a student?

5. Are you qualified to evaluate the potential of these properties? It sounds like this may be your first real estate investment.

6. Why wouldn't you live in the property (and possibly get a roommate to offset costs)? I assume that you're paying to live somewhere right now anyway.

7. You should establish an LLC or S-Corp that holds your investments for legal purposes.

8. Is it legal to get the 10% credit for a rental property? I thought it had to be your primary residence.

9. I recommend that you find an investor who can give you some advice on the property and your status.

10. If you want your parents to approve of your plans, get them involved. Show them the property. Ask their advice. Show them a written (business) plan you have for the property and demonstrate how it will cashflow. If it truly is a great deal, then they may choose to get involved, but you have to be able to demonstrate that you can do it on your own two feet.

11. Don't underestimate the power of the IRS/government to find out when you have skirted the law. Government does some things really, really well. LOL.

**Nick Brian** · 10-17-2009, 11:01 AM

Just don't forget there's huge penalty and fine for misusing tuition loan. Even some property requires money source. So don't screw your semester thinking of Condo.