Keep or use as rental

[Robb Rollinger]

We bought a condo one year ago in Chattanooga and are relocating out of state. I’d like to keep it as a rental but I feel like the HOA dues will cut into our profits. I’d rather not sell since I don’t need the cash. I have enough cash for down payment on a small place in Tulsa, our next destination. We would like to buy a smaller place there and use it as another rental in a year or so and continue that trend moving forward. I’m looking for input on the best starting strategy. Any pitfalls I should look into? Mortgage restrictions? HOA restrictions?Thanks for all the help these forums have provided.

[Anthony Dooley]

Will it cash flow? After expenses and HOA, will the rent leave any cash flow to you? If you paid retail for the condo, I will guess not more than $200, unless you got a super deal on it. In this case I recommend selling, since this is the best time in a decade to sell property. Condos historically do not sell as well as a SFR or appreciate as fast. Plus, I hate HOAs.