All Forum Posts by: Maria Callaghan

Hi All!

Did anyone take their required post licensing courses through the self-paced model many schools are offering nowadays? It would be a 30 hour course in digital format for #303.

I'd like to take the course with an instructor but my deadline for completion is around the corner, and the self paced option for 1 of the 3 required courses seems like the best option timing wise.

Thank you for any tips/insight from your experience!

1 Vote

Originally posted by @Joseph Bafia:

As you have read all the responses to your post, you will see that there is a wide range of opinions. Most are answering your exact question of "Do YOU avoid HOA properties?" What others do is a matter of personal preference and I believe each situation and scenario is unique, so just do our research and if the numbers work for you and you are comfortable with the HOA, then do it!

I see you are from Durham and you've likely seen the crazy appreciation and price growth. Maybe if your HOA goes bad, then what's the worst case....exit strategy of selling it for more than you paid?

I'm not a big believer in the word "NEVER", as I look to see what it takes to make it work, but I also have a high risk tolerance.
(full disclosure: I own properties with and without HOAs....no issues up to this point)

Best of luck and always looking to connect with others in Raleigh/Durham area!

Thank you Joseph, I would love to connect. Yes, Durham has been a wild place to start learning about real estate but I love the area and am ready to work around the challenges. First BiggerPockets connection made, thank you! This post has been so helpful to learn about HOA pro and cons, thank you everyone!

1 Vote

Originally posted by @Brendan Miller:

@Maria Callaghan

I don’t mind HOAs, they are pretty common in most areas that I invest in (AZ). The main things to look for are what the fees are and what is included in those fees (amenities, utilities if it’s a condo, maintenance, etc). The 2nd part is making sure the HOA is properly managed, and has adequate reserves. You can request from the HOA how many special assessments have been issued, if there have been a lot or high dollar assessments then that is a red flag to me.

I like HOAs because they help control the consistency and curb appeal of the community. There are likely a lot of bad ones out there, that’s why it just requires a bit of due diligence.

The one part I don't like is that you don't get loan pay down on that portion. For example, condos often have high HOA fees, where 1/3rd of the rent needs to cover HOA fee.

Brendan, thank you for the information above, it was really useful to listen to how you verify a good HOA situation over one to avoid. HOA special assessments was a topic I didn't know about until researching it after your post - thank you again! Glad I read The Book on Rental Property Investing and found this website - you all are awesome and super helpful!

0 Votes

Originally posted by @Jim Butterfield:

I dont like HOA's primarily due to expense the add. However depending on the area and fees they can be a good way to keep the neighborhood in good shape. a Friend of ours pays $450mo for her $560k condo. its a ritzy place of town and is very clean and maintained. unfortunately all the homes there look similar due to same HOA and style of home. BUT no trashy tenants and junkers on the lawn.

So i dont rule them out depends on situation. I do own 1 unit of 5 total we own with HOA

Thank you Jim, that makes sense about keeping the neighborhood in good shape and the pros/cons of doing so. Perhaps it is a good scenario when major exterior facing renovations don't need to occur, to avoid the bureaucracy? Thank you for your reply!

1 Vote

Originally posted by @Al Pat:

@Maria Callaghan I personally don't buy HOA properties nor do I recommend. I have had few in HOA subdivisions and since then sold it due to constant notices for petty things. Also, for whatever reason residents in HOA always seems to not like tenant occupied properties when they are the first one to pay all dues on time. Just headaches. I still have one that I will eventually sell but now they came up with a new rule that on every lease renewal, HOA should be paid about $250, still can't figure out for what? And this is a SFH in a subdivision of 150 houses.

Thank you for letting me know about your experience Al, I'm sorry the $250 charge occurred. This is money on top of the typical HOA dues that they have added, correct? Do you think vetting the property management company for high reviews is a good work around, or not as much? Good to know these things can happen, thanks again.

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@Scott M., Thank you for the thorough post! You are living very close to where I grew up-small world. Great to know that you have had good experiences with HOAs. Unfortunately we did not offer in the first 12 hours and lost the property, but I will keep this advice for our future rentals, especially as I learn more about options like bank purchases you described above. Do you usually find that the HOAs you've worked with do not have restrictions on rental property timelines/renting at all? Thank you so much for your time.

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@Gretchen EM Swanson Thank you also for your input I really appreciate it!

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@Bjorn Ahlblad Thank you for your input, that makes sense!

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New investor here!

Considering purchasing a home that has reasonable HOA dues each month for our first rental property investment, but have heard horror stories of HOAs deciding to not allow rentals, stop investments into the property like fences/additions, and in general make things more tricky. Do you avoid HOAs, and if not, what vetting do you do to make sure it will be a pleasant experience?

(I read the covenants and did not find anything about not allowing rentals, but have not heard back from the management company on their formal policy).

Thanks for any tips!

5 Votes

All Forum Posts by: Maria Callaghan

Maria Callaghan has started 2 posts and replied 9 times.

Post: Agents: Post Licensing Course Question

Post: Do you avoid HOA properties?

Post: Do you avoid HOA properties?

Post: Do you avoid HOA properties?

Post: Do you avoid HOA properties?

Post: Do you avoid HOA properties?

Post: Do you avoid HOA properties?

Post: Do you avoid HOA properties?

Post: Do you avoid HOA properties?