Aspiring Real Estate Investor Looking for Guidance on Next Steps

Real Estate Agent · Merritt Island, FL · Member since 2017 · 986 posts · 1k+ votes

5mo

Hi, I replied to your other post. This has more detail; the very short responses to your questions:

1. HOA expense is not the sole determinant of whether or not a deal is good. One must look at the full picture. There are people who do not like HOAs, that's fine. But that shouldn't be the focus. Do the numbers work? That's what matters most.

2. At $1550/month, pass on the duplex. I don't see you covering a $429k purchase with $3100/mo. And if you're looking at a 15-year loan, fuggedaboudit.

3. Spend the next 3-6 months listening to the BP podcasts before buying anything. Some will be of great interest to you and some won't be in your arena (skip over those), but there's so much knowledge and all for free. BP is amazing. A lot of these questions you'll already know. Not knowing them is proof that you should hold on to your wallet for now. Learn, learn, learn!

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Jordan Ray

Developer · Palm City, FL · Member since 2018 · 326 posts · 99 votes

5mo

Welcome to BP @Meara Trine!

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Arman AhmedPro Member

Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 941 votes

5mo

Quote from @Meara Trine:

Hello everyone! This is my first time posting, so please excuse my lack of knowledge. I recently discovered BiggerPockets and I am learning quite a bit from the podcast. My husband and I are in our mid 40s and looking to get into real estate investing. We live in Brevard County, Florida.

Last year we sold our large home in Merritt Island, and purchased a condo for our daughters near USF in Tampa (no more paying for dorms) and a townhome for ourselves. We paid cash for both properties, we then took out a mortgage on our townhome to purchase a rental property (another townhome). Although two of the properties are technically paid off, all three of them have HOAs and only one of them is bringing in rental income. The rental income does cover the mortgage and the HOA for the rental, but it does not cover any taxes or insurance. Not sure if we should have gone about things differently, but there isn't much we can do about that now.

We would like to try house hacking as our next move, but unfortunately there isn't a large inventory of multi-family homes in Brevard County, FL. We are currently looking at a rare Duplex that is listed for $429,000. We could move into one of the units and rent the other side, but the rent definitely wouldn't cover the whole mortgage. We would get a 15 year loan and try to put down $50,000. Each unit is two bed/two bath. It's not really in the best area, but it's not the worst either. It has good bones, but would need some minor upgrades (flooring, appliances, cabinets, bathrooms, etc.). If we moved into one of the duplex units, we could rent the townhome we currently live in for $1975 a month realistically. We could rent the other half of the duplex for $1550 a month realistically. I'm just not sure what to do moving forward. I feel like we may have made a mistake getting three properties with HOAs, although we do save on insurance since the HOAs cover the roof and outside structure. Should we move forward with the duplex and house hack? Should we get another townhome or condo with an HOA? We can purchase a three bedroom townhome or condo for $220,000, but we couldn't house hack in that case and we would have another HOA. Any guidance for a newbie just getting started???

You’re actually in a more stable position than it probably feels like, you’ve already converted equity into income-producing assets, which most new investors never get to that stage. The main tradeoff you’re running into is HOA-heavy ownership versus cash flow, and that’s really limiting your upside and flexibility more than anything else. That duplex could work as a house hack, but if it doesn’t meaningfully reduce your housing cost, it becomes more of a lifestyle decision than an investment one. A lot of investors in your situation eventually compare these higher-cost, HOA-heavy markets with the Midwest, where you can still find duplexes or small multifamily with stronger cash flow potential and fewer recurring restrictions. The key is deciding whether your next move is about convenience and location, or improving your long-term cash flow position.

[email protected]614-418-6081

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Diego AlvaradoBusiness Member

Real Estate Agent · Flower Mound, TX · Member since 2016 · 298 posts · 140 votes

5mo

Hi @Meara Trine

You are on the right track, but I want to help you shift your mindset. It’s clear that you’re wary of debt, but successful real estate investing is about strategically managing liability to scale your portfolio.

While owning properties free and clear isn't 'bad,' equity that sits idle often results in lower overall growth. Instead of settling for minimal cash flow, you can leverage that equity to acquire more assets. I encourage you to structure your finances and run the numbers—often, a deal that simply covers the PITI (Principal, Interest, Taxes, and Insurance) is still a win for long-term wealth. Focus on educating yourself and defining your long-term goals; real estate is a marathon, not a sprint.

Hope this help, good luck!!!

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Masoud ArouniPro Member

Investor · Pleasanton, CA · Member since 2026 · 119 posts · 52 votes

5mo

@Meara Trine, welcome and you're asking the right questions. Let me run the duplex numbers so you have something concrete to work with.

$429K purchase, $50K down, $379K loan at 7% on a 15-year: PITI roughly $3,600/month — and that's before HOA.

Rental income from the other unit is $1,550/m

Your effective housing cost after rental offset: roughly $2,050/m + HOA + taxes and insurance.

Compare that to renting your current townhome for $1,975 and living somewhere cheaper, the duplex doesn't save you much and ties up $50K in a property that needs upgrades in a neighborhood you described as average at best.

The better move to run the numbers on first: keep your current townhome, rent it at $1,975, and buy a simpler maybe $220K townhome with conventional financing. Your rental income nearly covers a mortgage on a $220K purchase, your capital stays more liquid, and you avoid a 15-year note on a $429K duplex that doesn't have positive cash flow.

You're not in bad shape, three properties with equity is a real foundation. The next move just needs to pencil on paper before you commit.

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Tchaka Owen
Real Estate Agent · Merritt Island, FL · Member since 2017 · 986 posts · 1k+ votes
5mo
Quote from @Masoud Arouni:

@Meara Trine, welcome and you're asking the right questions. Let me run the duplex numbers so you have something concrete to work with.

$429K purchase, $50K down, $379K loan at 7% on a 15-year: PITI roughly $3,600/month — and that's before HOA.

This is Florida, try closer to $4400 per month all-in. And that's without HOA.
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Alacia Mahnken
Realtor · Tampa, FL · Member since 2020 · 41 posts · 15 votes
5mo
Quote from @Tchaka Owen:

Quote from @Masoud Arouni:

@Meara Trine, welcome and you're asking the right questions. Let me run the duplex numbers so you have something concrete to work with.

$429K purchase, $50K down, $379K loan at 7% on a 15-year: PITI roughly $3,600/month — and that's before HOA.

This is Florida, try closer to $4400 per month all-in. And that's without HOA.

Agree! P&I alone is 3406/mo.
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Ashish AcharyaBusiness Member

CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes

5mo

Hey Meara! As others have mentioned, you’re in a pretty good spot, but the next step is definitely layering in a tax strategy so you can make the most of your rentals and current situation.

From a tax standpoint, with house hacking you can typically write off the portion of expenses tied to the rental side of the home, like a percentage of mortgage interest, property taxes, insurance, utilities, repairs, and even depreciation based on how much of the property is being rented vs. personally used. This can help offset your housing costs.

The other part to consider is that right now, depending on your situation, your rental activity may still be treated as passive, which means any losses are likely limited and carried forward instead of offsetting non-passive income like business income or W-2 income (I’m not sure of your overall tax situation, but if you’re paying a lot in taxes, this is something to consider). People typically try to change this by qualifying as a real estate professional, but that usually requires a significant number of hours and multiple long-term rentals, so if both of you already have full-time positions, that may not be the most realistic path.

STRs are another option that can potentially shift some of that passive treatment depending on participation, and with a cost segregation study, it can change the timing of your deductions. Cost seg accelerates depreciation by breaking out components like appliances, flooring, fixtures, etc. into shorter life categories, which can increase deductions earlier and potentially free up more cash flow to reinvest. And since you brought up repairs, smaller repairs and maintenance are often deductible in the year they happen, while larger improvements are depreciated over time, so knowing how that ties into a cost seg plan is key.

If you’re not already working with a CPA who specializes in real estate and helps you plan, I’d strongly recommend it because they can help you figure out which strategy best fits your situation. There are a few on here that you'll see answering questions. I'd interview a few and see who you connect with. Good luck and happy to connect!

[email protected]941-914-7779

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Masoud ArouniPro Member

Investor · Pleasanton, CA · Member since 2026 · 119 posts · 52 votes

5mo

@Tchaka Owen, fair correction, Florida insurance alone can add $300-500/month on a property this size, especially in that County.
At $4,400 all in the case against the duplex gets even stronger. Meara's effective housing cost after the $1,550 rental offset would be closer to $2,850/month before HOA, which makes the "keep the townhome and buy at $220K" math look even more favorable by comparison.

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Nadean Willis

Lender · Jacksonville, FL · Member since 2026 · 46 posts · 17 votes

5mo

Quote from @Meara Trine:

Hello everyone! This is my first time posting, so please excuse my lack of knowledge. I recently discovered BiggerPockets and I am learning quite a bit from the podcast. My husband and I are in our mid 40s and looking to get into real estate investing. We live in Brevard County, Florida.

Last year we sold our large home in Merritt Island, and purchased a condo for our daughters near USF in Tampa (no more paying for dorms) and a townhome for ourselves. We paid cash for both properties, we then took out a mortgage on our townhome to purchase a rental property (another townhome). Although two of the properties are technically paid off, all three of them have HOAs and only one of them is bringing in rental income. The rental income does cover the mortgage and the HOA for the rental, but it does not cover any taxes or insurance. Not sure if we should have gone about things differently, but there isn't much we can do about that now.

We would like to try house hacking as our next move, but unfortunately there isn't a large inventory of multi-family homes in Brevard County, FL. We are currently looking at a rare Duplex that is listed for $429,000. We could move into one of the units and rent the other side, but the rent definitely wouldn't cover the whole mortgage. We would get a 15 year loan and try to put down $50,000. Each unit is two bed/two bath. It's not really in the best area, but it's not the worst either. It has good bones, but would need some minor upgrades (flooring, appliances, cabinets, bathrooms, etc.). If we moved into one of the duplex units, we could rent the townhome we currently live in for $1975 a month realistically. We could rent the other half of the duplex for $1550 a month realistically. I'm just not sure what to do moving forward. I feel like we may have made a mistake getting three properties with HOAs, although we do save on insurance since the HOAs cover the roof and outside structure. Should we move forward with the duplex and house hack? Should we get another townhome or condo with an HOA? We can purchase a three bedroom townhome or condo for $220,000, but we couldn't house hack in that case and we would have another HOA. Any guidance for a newbie just getting started???

Hey, I'm also in Florida.

If you find a duplex that's not in an HOA, buy it! LOL

I do know that Lennar builds townhouses and duplexes with a lot of seller credits built in. They are basically always starting several new developments in every county in the state. It would be brand new build with loads of depreciation to take and atractive to tenants. Generally speaking the HOA is going to have rules against using it as a STR but I've stayed in several STR's around the state that I guarantee aren't allowed by their HOA. It would likely increase your monthly rents to cover our royally high taxes and insurance.

Then again, could you do a short or mid term rental with the duplex that isn't in the HOA? You can't really go wrong in your location.

You could also rent out both sides of the new duplex as STR or mid term.  Happy to help if you'd like to reach out.

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Jorge VazquezBusiness Member

Real Estate Broker · Tampa, FL · Member since 2017 · 1k+ posts · 688 votes

5mo

I would run away… and I don’t say that lightly.

After 20+ years, 3,500+ deals, and owning 40+ properties, HOAs are where I’ve seen the most deals go sideways. It’s not just the monthly fee—it’s the control. They can raise dues, hit you with special assessments, change rental rules, and if things go bad, they can lien the property and move toward foreclosure faster than most people expect.

And the part most buyers don’t see coming… they can block your exit. In my mom’s case, they wouldn’t approve a short sale, and because they had first right of refusal, they didn’t let her sell… but they also didn’t want to buy it themselves. She got stuck while fees kept going up. That’s way too much power in the wrong hands.

Now, to be fair, not all HOAs are bad—some help with insurance and big-ticket items, which matters in Florida. But I treat them like a problem until proven otherwise. If the deal only works because everything goes perfect with the HOA, I'm out.

If you're deciding between stacking more HOA properties or doing a house hack… I'm choosing house hack all day. That's how I built my portfolio—lower your living costs, build equity, and keep control of your deal instead of handing it to a board.

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Jose OrtizBusiness Member

Accountant · South Florida · Member since 2026 · 47 posts · 18 votes

5mo

Meara....

I don't think you messed up - I just think that you leaned toward stability over income, which is super common starting out. The real issue isn’t the HOAs, it’s that most of your equity isn’t producing strong cash flow.

From a strategy standpoint, your next move should improve two things: income and tax efficiency.

The duplex actually helps on both fronts. If you move into one side:

1. Your current townhome becomes a rental (now fully deductible + depreciable)

2. You pick up a second income stream...

3. You start stacking depreciation across multiple properties, which can offset rental income

Will the duplex fully cover the mortgage? Probably not—and that’s okay if the overall picture improves. Think in terms of your total portfolio cash flow, not just one property.

I'd be more cautious about buying another HOA property. They tend to cap your upside and limit control long-term.

If it were me, I’d lean toward the duplex plus converting your current home into a rental. That’s a step toward building an actual income-producing portfolio instead of just holding equity.

Hope this helps...

Jose

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Aspiring Real Estate Investor Looking for Guidance on Next Steps

Aspiring Real Estate Investor Looking for Guidance on Next Steps

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