Can you still get a good deal on a property with an HOA?

[Matt Davis]

Just wondering what experiences have been for those who have bought rentals with an HOA. Any positives experiences that were unexpected would be much appreciated too.

[D.J. M.]

@Matt Davis it depends, due diligence (DD) on the front end is key. Take a look at the rules to see if they are basic or overly invasive. Find out what the assessments have been in the past, have they remained steady? Look at the association’s financials, do they have sufficient cap exp reserves which would reduce the likelihood of a sudden increase/special assessment. What is the association responsible for as far as common areas, amenities, services, insurance? Condo association fees are usually higher than homeowner’s/neighborhoods because there generally are more common areas/responsibilities. A few more DD areas, does the board have a lot of turnover, any prior or current litigation, and reputation of the management company. Talk to residents if you can, real estate agents typically also have a good sense of good HOAs.