All Forum Posts by: Ray Malave

I have several years of experience managing HOAs, and *most* of the time, the amount of money in reserves is a good indicator of the health of an HOA. An HOA with numerous projects but little in the bank will be higher-tension than an association that has demonstrated fiscal responsibility for years. I would suggest that you request info on what the finances of this HOA look like.


HOAs can be a matter of taste. They are a minority, but I have worked with some investors who *only* buy in HOAs. Most townhome associations covers roofs, siding, landscaping, water and sever mains, etc. This takes many of the maintenance variables off the plate of the investor. It is easier to calculate for a $70/month payment than a $7,000 roof replacement. But of course, first make sure that the HOA is healthy.

 Absolutely! Are you only looking in Fayetteville, or open to Wilmington / surrounding areas as well?

 Thanks Blake.

I have to deal with HOA's all the time as an agent, some are terrible and some aren't half bad. It's going to be very situational. If the HOA is larger than the one building, maybe knock on some neighbors doors and ask them. I personally don't think I'll ever have an investment property within an HOA.

The value of the property is directly related to the quality of the HOA. A bad HOA can make your investment a terrible experience. A good HOA can make you feel like it's a good investment.

I try to avoid HOAs at all costs. The regulations tend to increase, you always have at least one busy-body that will hate your renters and hound them about every little thing, HOA fees always go up, etc. It's a low bar of entry for a reason.

By the by, I manage a couple nice rentals in a small HOA with 28 townhomes. They just had their annual HOA meeting and both of my owners decided to sell because they are tired of the HOA, even though the community is nice, HOA fees are only $70 a month, and things are going well. It's not easy having other people in charge of your property.