How much would rent be for a 250 000 condo?
That`s a good question and depends on a few factors. We can assume that the person renting the unit will want to recoup as much of the costs they are paying each month to service the mortgage. Making the assumption that they put down a 5% down payment this means they had to leverage 237,500. Assuming a 25 year amortization and current mid 4% interest rates and monthly payments means their monthly mortgage costs are in the neighborhood of $1314.50. Add about $150 in condo fees property taxes and these people need to pay about $1800 a month service all expenses on the property other than utilities which we will assume they will pass on to you to pay. So, at the high end they probably want you paying around $1800 but you can probably negotiate that down to $1400 or so if they are really hungry to get it rented. You can assume they will at least want to get a rent that covers their mortgage at a minimum.
