BRRRR condo purchase with HOA questions

[Robbie Taylor]

This is a potential deal in Lexington KY within a short bike ride of the University of Kentucky Campus. I can run numbers, but I have major HOA questions though.

The Basics

A 2 bed 1 bath condo in a quiet community.   

Sale Price $91,000 (I'd try for $88,000 all cash but most things are going for asking price)

$5000 rehab (flooring, some paint, cosmetics, etc)

ARV $112,000

Rent $1200 (about $600 per bedroom)

Appreciation 2ish% (I go conservative with condos as they don't appreciate like SFHs)

Occupancy rate should be close to 100%.  Nothing sits empty in that area.

My wife is an agent so that'd cut down the real estate fees.

My dad is the source of the $88,000

My goal would be to let it season for a year to collect the cash (there is a lender in Lex who will refi after 6 months at 80% of appraisal.  Go to real estate meetings and you can meet these people).

I'd like to give my dad his $88,000 back after a year without spending too much out of my own pocket. Thankfully there won't be a lot of holding costs since he won't charge me interest and he's not looking for profit. Which brings me to the HOA.

Here is the kicker. HOA fees are $373 a month. It covers Heat, AC, water, sewer, garbage, insurance, snow removal, outside maintenance (that includes painting since they're wood siding) and access to the pool at the clubhouse. I've spoke with other owners there. The HOA has a history of being good to work with and are financially sound.

Should the concept of dealing with an HOA be scaring me off? I know a lot of people on here won't buy with one involved. It seems like a major cash flow drain but it covers a lot of my expenses!