Just listened to the BP podcast #244, and a light bulb went off in my head. I live in Northern VA and every neighborhood I look into has some sort of HOA.
I'd like to start asking questions on how to successfully invest in this market. Is there anyone willing to help answer local Northern VA questions on this forum? I'd love to work on being a part of an HOA board (or even multiple boards) if that is what it'll take to for someone to help educate me.
@Nam Nguyen generally you must be a property owner in the HOA to be a member of the HOA board (but not always). Every HOA has some sort of annual election. You will need to study their documents and ask existing board members when and how the elections take place. There is also the possibility of being appointed to a vacant seat in between elections. If you buy properties in various HOA neighborhoods then you could sit on various boards. Not sure what you meant by "successfully investing in this market" - HOA boards are not paid - it is all volunteer. Perhaps you meant that you will be investing in properties governed by an HOA... ?
@Teri S. Explained it very well. But are you sure you want to own in an HOA? Many investors stay away simply because of the rules and "politics". Also it is very common that these "politics" get in the way of a great community and for investors making money.
@Steve Racicot HOAs are going to be harder and harder to avoid. Most new construction includes some sort of covenants to protect neighborhood values, condos and townhomes need HOAs to cover costs of common areas such as shared roofs and swimming pools. Nothing to fear in a well run community with adequate reserve assets @Nam Nguyen . Look at their financials and general upkeep. Do they assess a reasonable amount or are they always having to create special assessments to cover repair costs? Do you have a paid manager or is the board trying to take care of everything themselves? Are the current "rules" something that most tenants can live with or are you going to have constant problems with tenants vs. HOA?
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