My best friend and I have been talking for year about buying either a condo or a store. We've recently come across this store in great location that is for lease. We'd have to investment about $4,000 .Then theres the condo, we would have to put down 2,500 each and take out a loan from the bank. We plan to rent out that condo. Is it worth it? Which one would be a better financial deal. I am a college student, and i want to get a head start on getting some money in the bank. Or should I not risk it?

Thanks for your input.

How much is the condo? What is the rental market like in the area? What are units rening for? Are you willing to be a landlord? Just a few starter ???

You mention you are a college student, will other students be likely to rent also? Are you planning on staying in the area or use a property manager?  When I bought my first house, it was a seller's market and houses were being sold on the same day listed. This caused pressure to make a quick decision. I believe I would have found a better house had I been patient enough and really looked at the investment closely before submitting an offer. Spend some time researching the area and marketplace before locking yourself into anything.

Tomtastic25 wrote:

How much is the condo? What is the rental market like in the area? What are units rening for? Are you willing to be a landlord? Just a few starter ???

the condo is about a 180 its near private college and main city, so market is pretty good. I'm not sure there are any units for rent in that condo building, but around the location it goes for about 900ish. II'm hitting the number at the moment trying to figure out if its worth it, and going through people looking for places in the area. thanks, your Q's helped make me think of all the other q's and facts i need to lay down.

purpnexnex wrote:

You mention you are a college student, will other students be likely to rent also? Are you planning on staying in the area or use a property manager?  When I bought my first house, it was a seller's market and houses were being sold on the same day listed. This caused pressure to make a quick decision. I believe I would have found a better house had I been patient enough and really looked at the investment closely before submitting an offer. Spend some time researching the area and marketplace before locking yourself into anything.

I think i have to be patient as well, i'm kinda jumping to the situation. But i feel the condos price value is great. My parents bought a 2 bedroom condo for 270 so i feel a 180 in such a good location would be worthy. But then im not sure if i should jump to this chance or look around more since value is down. Thanks for your advice i believe i will def. keep looking into other possibilities.

Is the condo a 1 or 2 bed? 2s rent at a higher rate. At $180,000 your payment would be approx $1000-$1500 per month. Depending on the loan rate, the loan program and your down payment. My only advice is stay away form interest only and arms..

  I sounds like you would run in the nagative for awhile. However as a whole most real estate goes up from 3%-17% per year. The inerest is tax deductible. As well as your points on the loan at a depreciated value.

Do you have any student loans?  Do you want to put a mortgage on top of that debt?

"Buying" a condo or store would put you thousands (looks like hundreds of thousands) of dollars in debt.  Personally, I say "Don't do it."  Stores can fail.  Tenants can destroy property.  Take the money you'd be paying on a mortgage and put it into mutual funds.  THAT would be "a head start getting money in the bank," as opposed to getting a head start at getting further in debt.

Every party has a pooper, and that's why I was invited along.  Sorry for being a downer.

christensen.evan wrote:

Do you have any student loans?  Do you want to put a mortgage on top of that debt?

"Buying" a condo or store would put you thousands (looks like hundreds of thousands) of dollars in debt.  Personally, I say "Don't do it."  Stores can fail.  Tenants can destroy property.  Take the money you'd be paying on a mortgage and put it into mutual funds.  THAT would be "a head start getting money in the bank," as opposed to getting a head start at getting further in debt.

Every party has a pooper, and that's why I was invited along.  Sorry for being a downer.

Its okay my party wasnt that great to start with. i dont have any loans, but ive realized i will need about 12,000 a year starting next year for school. So i've decided not to buy either a condo or rent a store. Thanks for all your help guys!! For now i'll just work on school, and getting some odd jobs here and there.

It would be the same thing as you buying a home, that is a condo we are talking about. I mean as far as the store is concerned, I think that personally, you woul dget more out of buying a store than you would a condo. If it isn't mandatory buy a condo then why do it?

I'm not really understanding what you are trying to do and why you are comparing a condo with a storefront. Can you explain.