HOA- assessment coming up

10 Replies

Hey guys was wondering what you’re thoughts were, considering purchasing a unit in Florida listed at $265,000 on the beach low hoa of $400 per month. The unit needs very minimal work, in plan on buying, renting and keeping for myself let Tennant pay mortgage eventually I want it for myself. The building is in the preliminary stages of getting assessed, both buildings surrounding it have just have undergone renovations. This specific building is next. I am not sure what the assessment will be, if I purchase it. It will remain an unknown factor. What is your thoughts any idea what the assessment may possibly be ? Should I pass it up? Or continue because after renovation unit should be worth more.

Your best guess to what the assessment will be is to look at the other buildings in complex and compare the assessment they received..
Unfortunately the HOA can do what they want, I recently received a $400 1 time assessment for a Condo I own. The assessment could be a 1 time thing or monthly it’s whatever HOA decides..

How would I go about finding out what the assessment would be ?

@Jonna Petti   Reach out to the Property Management company or Board Members and Ask them.  

You should also get financial statements, Board Minutes as Well.   

In the end it boils down to the numbers, so due your due diligence.

@Steve Racicot Thank you. I am going to get a move on that. Thank you that was very helpful. 

@Raul R.   Thank you, i thought hat the building would have to vote on how it will be paid IE monthly or in payments. So I guess I was wrong its whatever the building decides?

@Jonna Petti
Members of the of the Association decides not the Building owners.
As an owner all you can vote for is who joins the Association/board typically yearly elections.
That’s probably the biggest negative of owning a Condo, as an owner you have little or no control of the HOA fees or assessments.

If the building is part of the same complex as the other two you might be assessed roughly the same as they were. I have known of HOA assessments in the range of 10K so be prepared.

Do not assume the value of though unit will rise. If the monthly HOA fees are increased the value of the unit could drop.

@Thomas S. Oh wow, thats some assessment fee. Well just found out today they had an accepted offer. I guess it wasn't meant to be. Although the hoa was super cheap to be on the beach, im upset i missed out because of this assessment. 

I can't imagine any scenario where paying $265,000 for a rental property in Florida would be a good investment.

@Fred Heller , i wouldn't say it would be an income producing cash flow, investment, however it is a property i would want in some time for myself, so i would have a tenant pay my mortgage :)

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.

Lock We hate spam just as much as you

Join the Largest Real Estate Investing Community

Basic membership is free, forever.