The property in question is a Condo that is bank owned and is practically rent ready. It is a bank foreclosure but it has a monthly HOA fee of 230. Should properties with these sort of fees be avoided?
That's not bad at all. Just include it in the rent, and make sure the HOA is doing what they are supposed to do. In Chicago I've seen HOA fees as high as $1,000 per month. That fee includes water, trash, common maintenance, landscaping, snow removal, sometimes windows.
Also check with the HOA to see if you can purchase the unit as an investor. MOST HOAs require owner occupancy for at least a year. If they find out you are leasing during the first year they can foreclose.
Definitely, I asked that question before I asked about the fees
Also please check on the past due HOA assessments. If this is a bank owned property, the HOA fees likely haven't been paid for many months.
In Illinois, typically the buyers of foreclosed condos need to pay the past 6 months of HOA fees.
I spent 6 months as an HOA manager and that was enough for me to avoid them like the plague.
A lot of power hungry board members arguing over what color fence to put up and what color doors are allowed.
May be good option depending on you though.
Make sure you read the governing documents and articles of incorporation - these outline the HOA rules and are public information. Your agent is able to request these, might be available on the HOA website or via the cities Business Commissoner website.
Read these in depth, some HOAs do not allow renters or even have clauses which allow the board members to control the rental agreements.
Hope this helps!
Thanks that helps