Sugar Land, TX · Member since 2015 · 6 posts · 2 votes
How do townhomes compare to other properties like condos or SF homes? Are they a good investment property to get started in renting and becoming a landlord? I feel that they don't have as much fees as condos do, though both do have HOA fees. The only bad thing is that you're sharing a wall with other property owners, but like condos, they're generally less expensive compared to SF homes, which starting out as a new investor without much capital to begin with seems like a good option for me.
Fishers, IN · Member since 2013 · 10 posts · 2 votes
11y
Hi Kevin,
The threat of special assessments turn some people off, and you also really want to watch the HOA fees. Contact the HOA and ask to see a budget and reserves prior to buying. There are good deals out there but you may want to be conservative with your cash reserves for the reasons mentioned above.
Real Estate Agent · Portland, OR · Member since 2014 · 42 posts · 23 votes
11y
OMG! HOA's can be a nightmare! My friend just told me he pays HOA fees, and he was STILL assessed $10K for a new roof! (I would expect that to be part of the HOA reserves- so be wise and do what Robert said, and check!) In my town home that I rent now, but when I lived in it the HOA decided to sue for construction defects and everyone was assessed $22K!! That nearly put me over the edge at the time. In fact 4 homeowners foreclosed. We "won" the lawsuit, and everyone got 10 grand back, but then shortly after had assessments equaling $10 grand anyway.......