New Guy - Question with HOA Fees

[Account Closed]

Whats up guys,

I am brand new to this space, I just finished reading the BP book on investing along with a few others. I do not own any realestate yet, but starting to learn my market (South Florida: Boca Raton).

This is my game plan so far: Find a 2bed 2bath apartment for around 130k or less which can rent out for $1400/month. The issue is my market is infested with HOA's. The cheapest is $277 a month up to $450 a month. Some include water, cable and insurance. Although its ideal to not have a property with an HOA (as ive heard), I may have to bite that bullet to grow in my area. (Boca Raton FL)

Just reaching out if anyone has advice or guidance when looking at these types of properties!

Thank you in advance!

[Kyle Funnell]

Hey @Account Closed,

I am a realtor/investor in Palm Beach County. Unfortunately, if you are looking for a condo, townhome or villa in palm beach county, 99% of them are going to have an HOA. When I conduct my search I usually filter for a max of 300 HOA. For there are some that are more expensive than $1000/month in Boca. I really look for the HOA's that include insurance and exterior maintenance which will help you Minimize operating cost for you as a landlord.

Like Taylor said you want to make sure to get a copy of the HOA guidelines and make sure to clarify the rental restrictions. HOA's can restrict you from renting more than once a year, which mean if you evict someone two months into the contract you have to wait another 10 months to rent it back out. They also restrict who you can rent to and usually interview all tenants. Some don't allow pets or trucks which limit your rental market.

Also watch out for HOPA’s (55+) communities. Some allow you to buy but not occupy the property unless one person is over 55+. This will greatly limit who you can rent to. Especially if you buy in Boca which has a large student population in their rental market.

Let me know if you need any further assistance.  I am happy to help. 

Kyle Funnell, Realtor