Realtor · Memphis, TN · Member since 2015 · 54 posts · 20 votes
I have an opportunity to purchase a condo for little to nothing around $30K. It's in relatively good condition. It's a 2 bedroom 1.5 bath. It's in an up and coming area. I plan to have it totally paid off in 5 years. Here's the rub. The monthly association fee is $120 a month. Once the condo is free and clear I'll have monthly obligations of $250 a month between taxes, insurance and association fees. Rent will be about $700 a month.
Because of the constant HOA fee Is a condo a good investment or should I put my money into single family homes?
Lender · Las Vegas, NV · Member since 2015 · 2k+ posts · 1k+ votes
10y
HOA fees take care of exterior maintenance items that would generally cost you more than the fees you pay. As long as you can generate an acceptable return with the HOA fee included in your expenses, I would not worry about it.
Realtor · Memphis, TN · Member since 2015 · 54 posts · 20 votes
10y
@Charlie Fitzgerald: Thank you for your input. I was leaning toward it and feel better now after I read your response. You are absolutely correct $1440 a year in exterior maintenance is very acceptable compared to what I'd paid otherwise.