HOA fee too high on rental property??
I have been looking at a condo near downtown Denver right now thats in an amazing location, and with current market trends will do very well in the years to come as far as equity gains are concerned.
My issue is after reading thru all of the documents/bylaws and rules of regulations from the condo owner, I am a bit wary because of the HOA being very very strict. My main concerns are, the HOA cost is $175 per MONTH; and there is a "working capital" fee upon condo possession that is another $2000.
Who knows if I ever get that back. It goes into a "segregated fund" by the board.
Is this HOA fee too high?? I was planning on using this property as an airbnb location as it is PERFECT for it, but the $175 per month fee has me wary... I am doing a 24 month lease option on this property and will be paying it at least 80% in cash if not all by that time frame ($160k); so...I was wanting to get it started as a rental property so I'm not out of pocket the entire 1k a month ill be paying on it as well until lease option ends. So it could at least balance out at zero for me. Other than the equity ownership ill have by lease end and then positive cash flow by that time.
I'm just not sure the route I should take... is this high for an HOA? This is my first condo purchase so I could use some advice when it comes to renting these things. thanks!