Condo investing DFW

[Jeremy Warren]

Hey there bigger pockets family!

Planning on buying my first property: 2 bed room condo in near/in Dallas and renting out the other unit to a friend. I'm a fresh college grad and 23 years old. What are some essential questions to ask the HOA/condo board to make sure my investment will stay strong? I like condos because of a smaller downpayment for a better location with less maintenance. Thank you in advance!

[Bruce Lynn]

Chances are you will not get to talk to the HOA or the board before you buy. Occasionally, but I find rarely. Even when they are available, they don't always want to answer questions or commit to things for a non-owner. A lot want you to wait to buy, then make a request, and come to the board meeting to discuss.

One think I suggest is really pay attention to the public areas and maintenance. All the deferred maintenance may fall on your pocket, depending on when things need to be fixed. I see a lot of condos with old roofs, or deteriorating fences, parking, parking lots, siding, etc. Lots of investors and some homeowners don't want increased dues, aren't proactive, etc, and let that stuff go way to long. Remember the HOA is not some 3rd party with deep pockets. The HOA is you....and your neighbors.

Not always easy, but look at the budget if you can before you contract.  Look at the rules and regs, look at the financial statement.   Walk around and talk to residents if you can.  Someone will normally give you the scoop on a lot of the things you want to know.

Also I would suggest you think of your purchase as a nice place to live, not investment property. Condos often have some great amenities like pools and gyms, and that is great when you get to use them, but not so great when you get to pay for them and your tenants get to use them. Often when you look at the HOA dues most condos probably don't make sense for investment. I'd say in Dallas, there are maybe 4-5 places with super low HOA dues, that might make you some money. Know your numbers.