Condo with high HOA due-good investment
I am looking to invest in a condo in Chattanooga . I can probably get it for 175k but the HOA dues are 430/mo. It's a 2/2 and can likely get $1700 rent. The cap rate is low but it is almost 1% rule. So I think the HOA dues are throwing off the cap rate. Thoughts on investments with HOA dues???
Most Popular Reply
As a rule I stay away from HOAs. You don't have any control over when they will raise the dues or when they will hit you with an assessment. Also they could change the rules on renting out your unit and it may be hard to sell to an owner occupant if the complex is unwarrantable. Overall HOAs are baaaad as an investor unless you own most of the units and run the HOA.
- Rod Hanks
Rod Hanks Insurance
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