Updated about 5 years ago on . Most recent reply
Cap X, maintenance and repairs with an HOA
Hi Bigger pockets! I have a question. When analyzing a Condo ($130,000 in good condition) with an HOA ($198) how much should I factor in for capital expenditures and how much should I factor in for maintenance and repairs?
On a well maintained single family house I factor in 5% for cap X and 5% for maintenance and repairs. But if there is an HOA (Like for a condo) in general don't they take care of some of the Cap X, maintenance and repairs? When analyzing a deal I shouldn't necessarily use that 5% metric, right? Thanks for your input guys and gals!