Single family houses with an HOA or condos are a good place to start as that takes your hands off some of the general maintenance."3.

Hi -I have a tenant who seems poised to sue based on “unfair” HOA fines and damages to our building that he agreed to pay for during a move.

HOA waited for every homeowners to send in their portion for the special assessment to replace the roof, therefore, the damage were extensive.

I assumed 70% occ $150/week day night, 95% occ. on  $600 thurs-sat for 34 weeks of the year, 50% occ 89/nt weekday, 200/nt thurs-sat for 18 weeks of the year.To calculate a "cap rate" I used NOI (after mortgage costs, utilities, hoa) and determined it's a 4-8% cap rate.

Purchase price: $95,000After repair value: $105,000Gross rent $1,250/month20 year Fixed option HELOC $71,250: $500/month Cash down payment: $23,750Taxes: $93/monthInsurance: $32/monthHOA: $276/month (this is a condo unit, the HOA is responsible for pest control, trash, and everything outside, so CapEx)Net Cash flow: $349.00/monthWe asked the seller to buy a comprehensive home warranty ($450 annual) in case anything breaks the first year. 

There is no HOA over the 8 unit dwelling. 

But if seller never ask u. U

That's $10,400 from one bad tenant.Or the HOA could send a letter notifying you if a special assessment to repave the parking lot and replace the roof.

If so maybe most of the capex is covered in your HOAs; in which case you’d break even or have a flight profit.

As the developer of your lot, you will have to form the HOA for a condo or townhouse, This cost is typically spread out when developing many Condo/Townhouse units and isn't as big of a hit to your Soft Cost budget, When you are creating an HOA for one Dwelling consisting of Two units, the cost is higher per unit.