All Forum Posts by: Account Closed

Hi Thang,

Just worked with Mark Heizer of HCO Properties to buy our first rental. I'd highly recommend him. Great, easy-going guy to work with, owns a bunch of rentals himself (mostly Durham) and manages like 1000+ units or something.

http://hcoproperties.com/

Sara

@Shawn S. - 

I'm wondering this same thing... did you ever get any ideas on this? What did you end up doing for your estimates? Thanks! 

How would you estimate repair, maintenance and capex on a property with an HOA that covers yard, external maintenance (siding, paint), roof, etc.?

There are the typical broad estimates ranging from 1% - 1.5% of property value or 10-20% of gross income, but those seem high when coupled with the HOA fee.

To be conservative I've been running my numbers with HOA fee PLUS either 10% of rents or 1% of property value, whichever is higher. Is this too conservative? Would it make more sense to use either 20% of rents or 1.5% of property value, whichever is higher, MINUS HOA fees? That seems to put a lot of faith in the HOA to use their funds efficiently. Is there another way to estimate these?

(yes, I'm already aware of the pitfalls of HOAs)

Thanks in advance!