Advantage/Disadvantage to owning properties with the same HOA

4 Replies

For those that invest in condos/town homes any opinions of the advantages or disadvantages of owning multiple properties in the same HOA? I have two now and looking at a third. I have two others in different associations and a SFH as well so I'm "diversified" across the HOAs but to have three would make it less so. There is a convenience and familiarity factor of adding properties that I like.

Having multiple properties in the same HOA does give you some additional clout in HOA discussions if you are an active participant, but you have to get to a point where your ownership is very significant.

If you are investing in a high rental vs ownership community, I don't see anything particularly wrong with that if your due diligence is telling you that the rent market there is strong.

I suppose a better question might be if you like the HOA in addition to the properties. Do they make your life easier or harder and do they do a good job in keeping common areas cleaned, etc?

I'd pay closer attention to the number of rentals VS owners in the association. As the rental number grows and exceeds the actual owner number traditional financing can get very difficult and often times will require a portfolio lender and or cash only which can devalue the condos over time.

regards,

Chris

Pro: The HOA will make sure your neighbors don't do crazy things like disassemble a car in their front yard or install a zip line.

Con: The HOA will try to do crazy things like insist that everyone leave their garage door open during the day or insist you file a report on your tenants on a regular basis and charge you $250 for doing it. (both true stories)

Al good points and stuff I'm considering. Thanks for your responses!

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