The previous owner had deeded the unit to the HOA a few years ago and just left, but apparently the HOA didn't realize there were outstanding liens until my attorney ran title.

First, what are the due diligence aspects of buying a place with an HOA?

I'm definitely going to be approaching my future purchases with a more even keeled business mind.I actually don't have a property manager because the grounds are maintained by an HOA and I figured I could call the appropriate specialties if the tenants have a problem.

HOA Fees?

You might want to get quotes from several HOA management companies to compare rates however only to keep her pay in check and possibly give her a raise.I'm finishing up a hotel project in Monrovia literally right next to Arcadia.

If taxes, insurance, and HOA are in line, and the place isn't trashed sounds great.

There were a lot less foreclosures for unpaid taxes and hoa fees than there were for unpaid mortgages.

Using just rough math the mortgage on that property with your down payment will be around $659.00 + HOA = $919.00 a month. 1800 x 0.5= $900.00.

In order to determine if a property is cash flowing, you will need to verify the following in your target market: Actual rents, taxes, insurance, HOA fees Then, you will need to deduct certain costs/fees associated with the rental: Maintenance/Capex (10% rent), Utilities (if any), Management (10%), Vacancy (8% min.), Yard Care (if any) Subtract all of these verified costs/fees from your rent - this is called your Net Operating Income (NOI).

Fannie and Freddie consider six months PITIA (A= anything else, such as HOA) per property to be adequate.