Townhouse/Condo vs. Multi-family

[Irasa Downing]

I am newer to the investing space. I spoke with our agent because a package came up and it is a group of 5 Condo's being sold with a 12% return. The concern I have is it's in a HOA. They are care of the outside exterior including roof, landscaping etc with electric and gas utilities. What concerns or questions would you raise or am I worrying about the wrong things?

[Cody Neumann]

@Irasa Downing

My biggest concern with an HOA is the risk of them raising the monthly fee as well as assessments. These two factors could wind up killing you return.

Also make sure you run your numbers as well and do your own due diligence if you haven’t already