I'm running the numbers on property in the Triangle area to purchase my first rental. It seams to me that HOA fees really hurt your monthly cash flow which is what I'm trying to focus on. I was wondering if any of you factor in things like a new roof and yard work as expenses you wouldn't have to set money aside to eventually fix/take care of and remove that from what you would normally set aside ie major/minor capex for homes without an HOA? For example, a property with no HOA would need a new roof that's $10k. Break that down that's a little over $40/month over a 20yr span. Lawn service would be another $30-40 a month. At an extra $80/month taken away from my capex, that would help mostly townhomes, in the area that's attactive with shops and good schools, look more appealing then the ~$140/month cash flow i would be looking at without that factored it. Just was hoping to hear some opinions from others who have similar experiences.
A lot of the townhomes don’t give you an option of no HOA. And typically i don’t think it includes the lawn maintenance, some might.
I mostly buy detached, and in that scenario HOA doesn’t include roof, so I look for low or no HOA.
HOA helps also on townhome like properties to avoid conflict between homeowners of repairs and such I suppose.
Thank you Yung. The townhouse I'm currently interested in is about $100/month and doesn't include a pool or common area. I don't want to assume on whats included however. I'm going to look into it today more when I meet up with the seller, but I was curious if what comes with an HOA is excluded from typical expenses reports otherwise noted when evaluating properties. I believe that strategy works, but could bite me if I don't long term hold.
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