Rental properties w/ high HOA

[Jonah Kubath]

I am researching to buy my first rental property.  I am looking in the Washington DC area.  Most of the houses / condos will be in the 500k range.  When running mortgage calculators, the monthly cost would be:

Mortgage: 1700, Taxes: 360, Insurance: 170, HOA: 500 (or more!)

Total cost per month: 2730

When I look at rental prices in the area, I would barely come out positive if not in the red.

Question:  What should I do differently when looking for houses or am I analyzing the properties incorrectly?

[Jonah Kubath]

Originally posted by @Mark Cruse:

You get a deal where the numbers will work. In DC it´s difficult to acquire a rental with decent cash flow in the more desirable areas. In addition to that it´s very competitive because everyone is chasing the same thing. A strategy could be maybe going to one of the lower income or emerging areas in a unit that needs renovation. If you land the deal with the right numbers you can rehab at or below the ARV and get your cash flow, in addition to future appreciation.

 Thanks for the help.  I will definitely keep looking.  I just need to be patient and find something that works for the numbers!