Expert: Brian Bocchieri - 1/21/2008

Question
I am looking at a condo to rent.  The question is my payments, taxes mortg, ins., maintenance on unit will be slightly more than the rent I can expect to get for the unit.  Should I do it?

Answer
Hello Lou;
The answer to your question depends on you investment goals.

If you are investing for cash flow then the answer is an obvious no.  

If you are looking for long term appreciation, tax deductible depreciation and write offs then you can take the leap and know you will be paying out of your pocket each month but you should reap appreciation when you sell the condo.  

That all being said I would like to caution you that the Florida condo market in most areas is quite shaky,  the rates  of appreciation are flat or declining and there is an over abundance of units on the market.  

I am not saying this is not a good deal just be sure to bargain as hard as you can because you may not be able to count on the appreciation any time soon.  I hope this has helped.

Wishing you all the best.

Brian Bocchieri