HOA Fees / Investment Returns

[Bill Keeth]

I am thinking about buying a townhouse or condo to live in for a couple years and then rent out later. I'm wondering how HOA fees come into play when calculating investment returns and/or cap rate. Should I just think of those fees as part of the mortgage, or is it a poor idea to invest somewhere with HOA fees when that money could be spent elsewhere such as a mortgage on a single family home? I am a first time home buyer looking to begin building my portfolio. I have been looking into multifamily properties but there aren't many to choose from in my area (Orlando), and I need to pull the trigger soon before my lease ends at my current apartment. Just looking for maybe an experienced investors thoughts on the situation.