All Forum Posts by: Mary Aviles

Thanks @Alecia Loveless for proving my point. There are tons and tons of investors with similar stories, in which a good investment turned into a nightmare, or they were losing money. Can something terrible happen in a property you own without an HOA? Yes, but the point is that with an HOA you literally don't have any control, so you're not able to mitigate or remediate the problems and the financial loss. This is why most serious/professional investors will not own any properties with an HOA, and those that do, probably wouldn't do so again.

@Jasmine B. It sounds like you've done research and due diligence, and you feel comfortable, and if you do, good luck.  Again, just be careful, and make sure you have enough reserves, an exit plan, and the mental fortitude to persevere if something goes bad. There comes a point in real estate investing where you have to stop analyzing and either move forward with the present deal or move on to the next deal. Good luck!

@Jasmine Bailey

My $10k special assessment was for roof replacement. Your association sounds unique because it's not responsible for exterior elements, such as roofs and windows, which are the big ticket items subject to special assessments. So you should be ok.

You should also be ok with the fact that the HOA won't ban rentals. But there have been cases in which HOAs have had a high percentage of rentals, and they banned them anyway.

The key with your situation and all real estate investing is that you SHOULD be ok, but you need to be positioned and be ready in case you're NOT ok. If things don't work out, and you have to sell, will you at least break even and be able to extricate yourself from the situation quickly?

From your posts, I get the feeling you've already made up your mind to move forward, and you're looking for reassurance and one last check. If you're aware of the risks and prepared if things go wrong, then go for it.

Do not go with Rocket Mortgage under any circumstance. As others have said, they are the absolute worst.

The stunt they pulled with you is typical. But that is the 1st of many, including charging you for things that other lenders never do, continually changing the terms, and failing to close.

There are so many other good lenders out there, I wouldn't use Rocket Mortgage if they were the last lender on earth.

I have owned a townhouse with an HOA for 7 years, and I wouldn't completely say no to other properties in an HOA. However, you have to be aware of special risks.

First, the HOA can raise dues at any time by any amount. Mine have gone up several hundred dollars over the years. So the $390/month profit you have now could go down significantly in future years.

Second, the HOA can levy a special assessment at any time. This can range from a few hundred dollars to several thousand dollars. I almost got hit with a $10,000 assessment. What would something like that do to your $390/month profit?

Third, you run the risk that the HOA can at any time stop allowing rentals. So when your current lease expires, you must sell. And if you think this doesn't happen often, think again.

Personally, I think your cash flow is too small to weather the financial ups and downs of an HOA. My property works because my cash flow is pretty significant, so I've been able to absorb the rising costs. And second, I joined the HOA board, so I can have a little more control.

This scenario is incredibly common when tenants don't pay for utilities. Fortunately, there's an easy solution. Install a programmable thermostat.

The digital moderately priced ones (under $100) have a lockout feature, so no one can change the temperature other than you. Simply program the thermostat to the appropriate temperatures throughout the day/night, enter your digital code, and the tenants can't change it.

The fancier ones, like Nest, have other features like an upper limit, so even if the tenants try to raise the temperature, it won't go higher than what you set the upper limit to. So if you don't want to lock them out and give them the ability to adjust the temperature, you set the upper limit to prevent them from raising it super high. In addition, these thermostats have apps, so you can remotely monitor the temperature and make adjustments.

Last, many power companies have energy efficiency programs, in which they either give you for free or at a greatly reduced rate both kinds of thermostats. Just look on their website.

Jaki, I'm really close to you in Tinley Park. I have struggled to find a good CPA for years. I want someone who does more than just plug in numbers and spit out a return; I want planning and advice. They have to know real estate investing. And I want someone who is reasonably priced.

I've tried many, both in IL and out of state. I've encountered a wide variety of levels of competence, REI knowledge, willingness to help, and price. How could preparing a return for 7 rentals cost $500 for one CPA but $2k for another? And don't tell me it's the experience, education, etc.

I'm glad to say I finally found an awesome CPA. He sits down with you and first of all asks you questions (what's your goals, what's your long term plans, what do you need). Sounds simple but almost no one does it. Best of all his prices are great. He handles returns for hundreds of investors.

Andrew Thomas, Certified Accounting and Tax, (224) 567-8091. PM if you want to talk.

I agree with everyone that one of the best deterrents is to watermark your photos. But they didn't say with what. Add your name/company name and phone number, which of course means scammers can't then use their own information.

The second thing to do is to add an alarm system. The best for vacant properties is Simplisafe, because it uses cell phone towers instead of WiFi, which vacant properties don't have. You can buy new and used systems and components on Craigslist and OfferUp to save money. It's $15/month without the app and $25/month with the app. And you can start and stop service anytime you want. An added benefit is personal safety during showings.

I have been using Cozy for years and love their all-in-one product. There are many, many posts, which have reviewed Cozy. Type "Cozy" in the search, and you'll get a pretty comprehensive review. There's a few, minor issues, but everyone seems to like it.

@Matthew M.  I have lived in Tinley Park for 11 years.  It's funny because I live at 167th and Harlem like Mindy Jenson mentioned.  And it's not on the "wrong" side of Tinley Park.  Tinley Park, Orland, and several other communities in the area are fantastic places to live, and they have great investment properties, since the rents are very high.  I have a townhouse in Tinley Park that I am renting out for $2100/month.  The downside is of course, that houses cost more.  But since you listed your qualifications, you would more than qualify for a nice house down here.  I have been working with my agent for several years. He has been in the business for 30+ years, both as an agent and as an investor with his own portfolio and working with investors such as myself.  PM if you're still interested, and I'll send you his contact info. 

I heard about them, and they sounded like a great service.  But I wanted to compare their prices to my handymen/contractors that I use.  So far, I've only compared 2 repairs (replacing a water heater and changing a light fixture), and the contractors they referred me to were higher than my personnel.  That doesn't mean all of them are, but that's my experience so far.  They would be great if you didn't have anyone.  And their customer service has been very good.