I am investing far away from the place i live.
What would you recommend as a first investment in a new area, single family home or gated community?
Thanks for the advice.
From what I've seen, most gated communities are HOA controlled. I stay away from most HOA's due to fees, assessments and rules unless it's a special circumstance.
The pluses are that usually the houses are maintained better, the bad part is that you can get fined for having a couple weeds in the yard. I know because I've been fined for it. They can also decide to do some major upgrade that could be a huge amount of money you weren't planning for.
A good property manager should be able to help with maintenance and upkeep and doing inspections.
As Allen stated I would stay away from a gated community for the exact reason of HOA's. I currently have a rental that is not in a gated community but is under HOA. I can tell you now having to contact my tenant because of a garbage can being left outside without a lid or a car of his being parked in the same spot to long without being moved is a huge headache. It amazes my the things that are under their contract. The only reason I have this rental is because I lived in it before and did not want to sell it right away because of the market but was forced to move. On top of everything I have to pay a fee every month that cuts out of profit to my pocket.
If you seriously do considering purchasing a home with a HOA. Read in DETAIL their contract to ensure its something that you will be comfortable with. But I highly advise against it.
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