Navigating HOA Successfully in the Denver/Aurora CO Market
Home Owners Association fees, in a lot of ways, are a dominating force in the real estate game. They seem to be taking a bigger and bigger piece of the cut (depending on the area), and are dipping into real estate investors profits. Or are they? Let's talk about it.
From my perspective, I'm running into some issues with both my calculations and property finding, regarding HOA. Just FINDING properties in my area without them, or at least low enough is pretty tough for Denver, CO and Aurora, CO. I've talked with home owners in the area, and a few things have come up on the topic.
1. HOA's seem to cut into profit margins as far as rental properties are concerned. They also Limit if you can rent the property as an investment property at all, in the HOA contract. (Anyone know that one? True or False?)
2. People I've talked to say "Usually, they charge way too much for the services they provide, don't waste your money, move on to another property".
3. Others say, "HOA keeps the community in order with rules regarding noise, trash, parking, and land maintenance, so it's worth it, at the right price".
4. Listing sites like Zillow and Realtor.com have conflicting information. Both on Price and HOA cost.
With all that said:
Do you just have to dig in harder and call the agents and ask some of these questions below?
1. What the HOA contract is in regards to Limiting Rental investments/tenants, the actual monthly cost of it, and
2. What is the actual asking price of the property?
For Investors:
What is the best source to find the most accurate HOA info?
How does one factor in the HOA appropriately into a fair market rent AND getting you cash flow?
These are huge questions that have been bugging me for a while. Don't feel like you have to answer everything. Pick and choose! Maybe it isn't as difficult as it seems. Maybe it's more difficult. Let's find out! Thanks for reading!
"Change your mentality from 'I can't' to 'how can I?'."