HOA Fees and Capital Expenditures

[Travis Turnbull]

Hi everyone I am a newbie and have a question about analyzing deals. A condo in my hometown has come up that I am interested in. I was wondering since it is a condo with HOA fees,if I need to still account for capital expenditures and or repairs? I also plan on putting some money into the kitchen new counter tops/appliances, before putting it up for rent. Please let me know what you think! Thanks!!! -Travis

[Ryan Murdock]

Generally the HOA takes care of the exterior surfaces and you are on the hook for the interior stuff. If so, your capex expenditures would be greatly reduced although that is usually offset by the HOA fees you will pay.

Request copies of the By-Laws and Declarations and read them thoroughly so you can have a firm grasp on what you are responsible for and what the HOA is responsible for. I see way too many buyers purchase condos without reading any of those docs or having a good understanding of what it is they have purchased.