I am new to investing and I am looking to by my first property. What are the pros/cons of buying a multi-family property in a community of multi-family properties where the property is not on its own land, there are HOA fees, etc.,?
Are you asking about properties on ground rent?
No. This 4-plex is in a group of 4-plexes managed similar to townhomes/condos per se. I know there will be some limitations and advantages here versus a multi-family property on its own lot. I am looking for the pros/cons of this route.
Pros: I'm guessing all the buildings will be pretty similar if not exactly the same. So you'll know what maintenance to expect, and how much things cost. Also you still have the availability of residential financing.
Cons: More roofs to manage. If you aren't the only owner then you have to worry about those around you being slumlords and bringing the quality of the neighborhood down. Especially the case where there are no HOAs to impose a certain amount of decorum.
@Stephen Scott when put in a position without absolute control you are subject to accepting things you won't necessarily agree with. Not my thing, but everyone looks at things differently. I say "NO WAY" to "HOA" PERIOD!
Carter summarized this pretty well. Shawn too
Thanks guys for the responses. I went to visit the property today and it is a no go.
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