Usually on DSCR loans, lenders will provide a preliminary cost breakdown but we usually can't pick the pencil back up and finalize terms until the appraisal report is in hand and expenses (tax/insurance/HOA figures) are finalized.

Hi, quick question on HOA Foreclosures.I won a HOA foreclosure at auction in Texas back at the end of 2023.

Why are you looking in that area and why a townhouse with HOA?

Either option is good but they both have pros/consNEW BUILD - You'll have all those warranties, 1 year, 2 year, 10 yearEXISTING HOME - You might have more freedom for what you can do with the house, no HOA & larger backyardA lot of new builds are offering interest rate buy downs that are lower than the regular market right now.  

Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable).

Would not recommend HOA communities or condos/townhouses.  

Additionally, property taxes and HOA fees are often higher in these developments, and it might take time for rental rates to stabilize.

When I factor in mortgage rates, HOA fees and insurance.

Additionally, the Airbnb market is pretty oversaturated here and a lot of the HOA's are cracking down big time.

Not all Pocono HOAs allow short term rentals.