$187 Kind Hearted Investor Needed, Please Buy My Condo (Kahulu) (map)
Reply to: see below
Date: 2008-04-26, 5:21PM HST
I have a completely remolded condo at Harbor Lights that I am in desperate need to sell, It has a great Location between The UH Maui Campus, Our Main Mall, and the Ocean, with garden and pool views,
I worked through High school and then through college full time to support myself and in that time saved every extra dollar, 2.5 years ago i bought an investment property to get into the realestate game, i then completely renovated it to top of the line, Im 22 now and the GM of a popular maui Restaurant and in need of some help, I bought the condo for 195k put 60k into it and now 0we 187k, everything was fine until the adjustable rate mortgage went through the roof and totally changed my lifestyle, i am currently homeless because i cant rent a place and cover my mortgage (if my renters were to move out) So it's a really bad situation...
Rental Income $1250 monthly, $15k annual
Maintance fees $592 monthly, 7104 annual
Propety tax 100 monthly, 1200 annual
which means: approx. $6k net rental profit or 3%of your investment(which sucks)
but if the market returns to it's previous Peak of $250k in five years it would make your investment a 10% return which really isn't bad but thats if it is completely paid off,
LOL! This is starting to become comical now.
Couple of things to point out here; I love how he ads up the expenses at ONLY $8,300 per year for just taxes and association fee's and claims the place is 6k cash flow positive property. He of course totally neglects to factor in the mortgage he is paying. In fact I estimate that his mortgage alone with a subprime arm probably costs him 18K a year.
This place is really a 12 grand per year money trap. And that is with a renter living inside it.
Second thing... If a place only rents for 1200 a month... Its only worth 120,000-130,000 dollars.
Its all about the fundamentals baby.