HOA for rental property
Trying to purchase 2B/2B apartment ($45,000 with cash) and the area rent-to-price ratio is favorable.
It can generate $300 cash flow per month after calculating all expenses( HOA: $170 per month, vacancy 8%, management 10%, insurance, tax, no need for maintenance)
It will be my first investment property, so I am very nervous about this deal. The offer was accepted but I am a little worried about HOA.
Is gonna be a okay deal or should I reconsider this opportunity?
I'd appreciate sharing any insights or experience.
Most Popular Reply
@Anna L. you need to obtain the HOA bylaws and covenants ASAP. Have your real estate agent reach out to the listing agent to gather all pertinent information. There is a solid chance that the subdivision has rental restrictions and is currently capped. The last thing you want is to close on a deal you can't even rent out or left to be waiting for a rental permit for years. Hope this helps!