2 Bedroom Seattle Condo That Cash Flows

2 Bedroom Seattle Condo That Cash Flows

  • Jeff Reynolds
  • 10/14/12
 
Ok, I don’t always analyze investments for you guys, but this one makes too much sense. It is an example of a good condo, that has great upside from a cash-flow perspective and long term investment potential. Unit #1904 just closed this week. It is a 2 bedroom, 2 bath at 1,195 sq. ft. The sale price was $529,950.
 
Here is the scenario:
 
Purchase price: $529,950
Down payment: 20%
Loan amount: $423,960
 
Let’s assume the borrower can get a 3.85 % rate.
 
Monthly payment amount: $1,987.56
Homeowners dues: $561 per month
Taxes: ($3,961 or $330.08 per month)
 
Total monthly payment: $2928.64
 
My estimated monthy rent: $3,200
 
Monthly cash flow:  $271.36
 
Now you may say ”Jeff, thats not a lot of monthly income. There is downside risk, leasing fees, etc.”  I would respond with the following advantages:
 
  • 2007 building (The Cosmopolitan)
  • Phenomenal location (walking distance to South Lake Union)
  • Amazon is your neighbor (high quality prospective renting pool)
  • Employment growth
  • One block from a bus-line
  • Great floor plan, big views
  • Excellent building with high quality amenities (24 hour concierge, business center, spa, sauna, rooftop deck, homeowners lounge, guest suite, etc..)
In addition to the above mentioned, zero condos have been built since 2009. If there is a place to make a real estate bet, its Seattle. This is a good unit, sold at a great price and in my opinion it can be looked at as a excellent rental.
 
 
 

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Jeff Reynolds is a real estate broker with Compass Seattle. Jeff is the founder of UrbanCondoSpaces and he leads Seattle’s number one condo team. UCS is a blog specializing in Urban Living. Contact Jeff to see homes for sale, to sell your condo, or to simply learn more about the Seattle Real Estate market.

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