Milwaukee Condo HOA Concerns

[William S.]

2 bed, 1.5 bath (Cash purchase)

List Price: $40k (I think I can get $30-$35k)

Rent: $750-$800

Rehab: Under $1,000

Insurance: $33.33/m

HOA: $96.24/m (covers water, lawn, snow)

Taxes: $106/m

Vacancy 5%: $37.5/m

Repairs: $83.33/m

CapEx: $45/m

Lease Fee: $62.50/m

PM 8%: $60/m

Cashflow at $750/m = $242.10/m

The HOA concerns me. What if they decide to raise it to the point where the rent cannot keep up? Any local condo investors have this issue?

Thanks!