Yoski

AIG, Fannie and Freddie Put the Crunch on Condo Mortgages

A friend of mine lives in a 2/2 condo in Bal Harbour (Miami area). She rents it at $1600/month. Taxes run $1000/month, HOA are $600 and special assesments (roof, elevators, swimming pool, etc) are another $250. That's a grand total of $1850/month in operating expenses. Even without considering the mortgage the place is a 1600-1850=<250> a month liability. How much would you pay for a place that COSTS you $250/month when rented? Certainly not anywhere close to the $600K aksing price. Personally I wouldn't pay $1 for it.