All Forum Posts by: Jasmine B.

@Mary Aviles

Thanks Mary! I’m prepared for the calculated risk. Great advice! When I wrote this post originally, I was going to walk away from the deal. But after doing more due diligence based on your perspective I’m leaning towards going through with it. Best of luck to you on your real estate journey!

Thanks Mary for this insightful response. The unique part about this community is that the buildings are individually owned by investors & house hackers so I highly doubt the HOA will decide to make them un-rentable.

I have strongly considered joining the HOA board to stay abreast and make my voice known. If I decide to purchase, I would most definitely be involved. Are you local and attend in person? I'm in a different state so I wonder how that would operate.

I’m curious what the $10K charge was for? I’ve seen ~$500 special assessments but none in the thousands of dollars range. 

The HOA fee right now is $30/door each month & covers the common areas upkeep & lawn only so exteriors and the roof of the buildings would be up to me to build into my CapEx forecast. Im wondering if because the mandatory property mgmt company is also the service provider for the HOA, if I will be able to make an impact on the Board.

I think that’s a good way to learn the operations if you work for a reputable one that is doing everything really well. I like the idea of learning from experts first hand and the getting experience of you have the time and capacity. There’s always books & YouTube! 

@Dennis Wayne so you’re against HOAs entirely? No matter the numbers?

Even if you purchase a deal with $40K in equity and it’s cash flowing $390/mo?

Thanks Nathan! My thoughts exactly. 

@Joe Splitrock Thanks for the responding. That's a good point on streamlining. I'm not against HOA's, I'm just not a fan of of the CC&R stating that we don't have immediate recourse if the prop mgmt company fails to perform. I thought about joining the board but it doesn't seem promising for the hassle. Appreciate your perspective.

What reservations, if any, would you have if a property management company is the service provider for an HOA & in the HOA CC&R's the same prop mgmt company has exclusive rights to leasing a community of Multifamily properties?

Meaning if I owned a $1M 6-plex, I have NO flexibility to manage it myself or hire another company if they drop the ball one too many times. The HOA Declaration says that I must use the assigned property mgmt company exlcusively.

To paint the picture more clearly, the Prop Mgmt company could just decide to increase the monthly HOA fee from $160/mo to $200/mo. They could also decide instead of 8%/mo to manage the rentals, they want to charge 10%/mo. If the other Owners aren't engaged or involved in the HOA meetings (which most people choose not to be) this one company can have a field day. They could be mediocre at managing tenants and owners would have no recourse? Someone talk me off of the ledge.

Thoughts, feedback? Would you buy a property in the community?

I recommend hiring a CPA. Even if you didn't own it for very long in 2017. You want to maximize your tax savings. The experts will help you do that and set you up for success this year. If your taxes aren't too complex, their fee won't be unreasonable. I'd go with the CPA. 

Evict this tenant for not paying rent when it's due. Then make the upgrades you need to make. Fire this management company. It sounds like you're already managing it yourself. I had a tenant purposely breaking stuff in order to not pay the rent. They (gratefully) broke their lease before I could evict. But this sounds like a similar situation. It worked out for me because I was able to list the house for rent and maximize the tax benefits of remodeling while it was vacant vs occupied.

Hello,

I’m looking to remodel my investment property in Dallas, Texas. I need some minor structural things fixed and a few beautifying updates. 

Reliable trustworthy referrals only. Please refer folks with integrity. 

In addition, I’m looking for a on-call “handy man” type of person for ongoing maintenance & up keep. 

Thanks!