Is an HOA a deal breaker for a cash flowing quad?

[Ruben Kanya]

Would you have any pushback or concerns on a cash flowing quad in an HOA community? Is the HOA a deal breaker for you? Slight concern or major concern? If so why?

I was speaking to a partner in my network and they had some concerns around the risk being on the landlord for any tenants' violation to the HOA board...almost similar to a condo...hence why we usually run in the other direction...but what are some other risks or things that you think should be taken into consideration? Or reasons why HOA may not be bad? Open to hearing your thoughts / experiences...thanks!

[Tyler Gibson]

@Ruben Kanya this is a great questions. I would think the HOA would not in and of it's self be a deal breaker. You could always include any HOA restrictions in your lease agreement and stipulate that any fees incurred due to an action of he tenants would be passed on to them. What does the HOA provide in terms of services to you the home owner? do they do maintenance to the lawn or common areas or the structures themselves? The other consideration is if the HOA does maintain the structures or roads or common areas how does it seem they are doing? Ask about the financial health of the HOA. Do they have reserves or will they need to do special assessments. I typically do not Like HOA's myself but that is because the additional cots typically kill my cash flow. But if the numbers work and the HOA seems to be well managed I would just include additional requirements in my lease to cover my liability of the tenant breaking HOA rules and incurring fees.