Dealing with HOA dues

[Roman Pak]

Hi BP!

I'm a noobie investor. I've been looking at starting out with 1/1, 2/1 or 2/2 condos in my area (NW suburbs of Chicago, specifically Buffalo Grove).

The issue I constantly run into is that when I run the numbers on a property, the HOA dues, typically between $250-$400/mo. completely kill any potential cash flow on the property.

The rental ratio for condos in my area is around 1.5% of purchase price. The ratio for SF houses is even lower approx. .8%-1%.

Does anyone have any experience solving this kind of problem? Do the renters take care of the HOA dues every month?