Thinking of Selling my 2+2 condo - Is it a bad time?

[Clarissa David]

Hello, so my HOA has gone up exponentially since I bought my condo from the $400s to what it is now which is $735 /mo. I knew buying this place there was that risk in the HOA increasing but I never imagined it to go up this much. I've been considering moving for a while but with "life" the timing was not right. Now, I am able to focus on the possibility of moving but I just don't know if that's wise…. I do house hack and rent out my second bedroom which covers the HOA cost and part of my mortgage. I don't see myself in this property long term, nor see it as a longterm rental. My gut tells me to get out sooner than later and find something that will cash flow.

Is now still an okay time to sell and capitalize on my equity? 

My options will be to rent out a cheaper place with my current roommate, or ultimately move back in with my parents until I find the right investment deal. 

[Theresa Harris]

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Talk to a local realtor or two as they will have a better idea about the market. You don't say how long you've had your condo, but for the HOA to almost double is not a good sign and suggests something is wrong with the management. I'd get out.

I had a condo I purchased to live in (my first place) and then rented it out.  They kept having special assessments for various things and after a while, I decided I'd had enough of that and sold it.  A few months after I sold, they had a dozy of a special assessment (in the millions) and I was so happy I sold when I did.

I actually met with my realtor and talked about this over dinner. He thinks if I sell now, I will still cash out decent equity. 

I've been in my condo for 5 years now.. and my HOA has gone up 5-10% each year since PLUS special assessments.

 Then, I'd sell it now.  While you may get a lower price in the winter, if you turn around an buy a home you will also be buying it at a lower price.  If you can afford it, I'd suggest a single family home with no HOAs.

 Eventually I would love to buy more properties, but I know I need to take one step at a time. The next property I hope to buy is one that could set me up for potential cash flow or house hack possibilities. What are your thoughts? 

 Look at a few homes that are for sale in your price range to get an idea of where that gets you.  Then I'd probably sell, but only if you can buy another home.  While the market is slow in many areas, it will go up again in the spring and the longer you are out of the market, the harder it will be to get back in.

Got it. 

so would you say, selling then renting in the interim is a bad idea? 

 If you rent, you are going to have to move twice (which may be fine); but most landlords will want you to do a 1 year lease.  That gives you less flexibility to find a new place and move in.