New member from the SF bay area

[Harris L.]

Hi guys,

I'm a new member of BP.. have been investing for the past 4 years..but just recently discovered BP... my goal is to get to $10k per month cashflow... so my wife can completely quit her job if she chooses to...I'm currently about 30% there.

anyways.. here's my intro as well as a long question...sorry for the long post.. here goes...

I'm a programmer by trade but did ok in the past 10 years with online marketing...ie managing adwords for small businesses... anyways and I'm currently using what I've made in those 10 years as capital for real estate investments.

I do have a question.. I have 3 condos so all have HOAs and one of them have been increasing...started off at $278-4 years ago.. and it's now at $325. about $12 per year average. Not horrible but would like to plan ahead. There's always a chance that this will increase faster... and I'm not sure if I should wait before I doing something about it...because if I wait the hoa fees might be too high too hard to sell...

I've been thinking about what to do next... I devised up a few options.. please let me know what you think and if you have other ideas...

Here's Details of the condo with increasing HOA fees.

1. Two comparable condo in the area sold at $310k and  $302k just in the past 2 months..

2. I got it for about $118k. 

3. I'm at about 9.+% cap rate - around $900 / month positive cashflow.

4. rent was $1395 in 2012 and then now at $1460 - planning an increase this january by 10% if still month to month and 5% if 1 year lease signed.

5. comparable rent in the area for condos of the same size is at about $1800-$2000.

Options

1. Don't sell since the cap rate is still good and my main purpose is to get good cashflow, just increase the rent consistently to at least stay with the market increase.

2. do a 1031 swap with a SFR or duplex in a slightly different area...after some research.. I can possibly put in additional capital $100k there abouts to increase my monthly cashflow by 2x to $1800 or so.

Other options/ideas?

thanks for reading my long post.

best regards,

Harry