SFH or condo/townhome with HOA fees?

3 Replies

Happy Monday Everyone, Here in south Florida many properties come with a hefty HOA. Granted this often covers roof repairs, exterior insurance, lawn care, sewer and some other expenses. I am curious what other investors find to be more beneficial, buying a property with a HOA or a SFH without a HOA but more out of pocket expense? Is the 200-500/month HOA fee worth it?

@Ashley Lynn    I have multiple properties with HOAs here in South Florida. I don't mind the fees, as they all take care of the lawn and water for sprinklers. One even includes cable for my tenant. If it is a gated community, it also adds a layer of security for your tenants. I probably wouldn't go as high as the $500 you listed, but it wouldn't be unreasonable as long as the income it brought it made the numbers work. It's only worth it as long as it doesn't eat away your cash flow. The majority of the best properties here have HOAs.

I personally won't buy in HOA communities unless it's an easy flip where the association won't be a nightmare.

I won’t invest on properties with HOA, they can raise the fees anytime and without your vote. I owned a condo with $250/hoa. The hurricane caused damage to the roof and instead of fixing it, the HOA decided to replace it. The fees went up to $850/month for a few months until They were able to get a loan and finance it. The fees were lowered to $500/month. We couldn’t sell it for a long time.
If you still want to do it, make sure to review the HOA budget and confirm the community has reserves.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you