Am I making a mistake?

[Lalo Alvidrez]

I am in the process of getting ready to sign on a 2br 1 1/2 bath condo. After crunching the numbers I am in the green about $50. I was going to raise rent $50 after end of lease. What's killing the deal is the HOA. It is high for that area. I am putting 20% down. I am having doubts so I'm asking here how you feel about this deal. I pretty much have talked myself out of it but just need some reassurance.

[Joe Splitrock]

I am not a fan of condos, specifically because of HOA. Even worse than standard HOA fees, you can have special assessments that could be thousands or tens of thousands of dollars. Condos are generally the first properties to lose value in a down turn. It seems you have thin operating margins. Many factors play into this decision including age of property, overall condition and location. Some markets have seen great appreciation on condos, but that is generally highly populated areas where land is scarce.