If you are buying a rental property you're likely wanting a solid investment that produces positive rental income and cashflow every month. Well, if this is you - it might be a GREAT idea to AVOID Buying a Rental Property in an HOA Community.

I have extensive experience managing rental properties located within HOA subdivisions and let me tell you - it is a huge pain because each HOA has its own set of rules and regulations and they oftentimes target rentals versus owner-occupied properties.

In this video, I'll share with you Why You Should Not Buy a Rental Property in an HOA. My top reasons to avoid HOAs are:

1. HOA Rules and Regulations

HOAs are notorious for their strict rules and regulations. These can range from exterior paint colors to the types of vehicles allowed to be parked outside, or how long your garbage cans can be left outside.

2. Rental Restrictions

Some HOAs impose restrictions on rentals, limiting the number of units that can be rented out at any given time or even banning rentals altogether. I’ve even seen HOAs restrict a rental owner from renting out the property for longer than one month and vice versa.

3. High Association Fees

HOA fees are typically paid monthly, quarterly, or annually and can be hefty. These fees can eat into your rental income, reducing your overall profitability.

4. Conflicts with HOA Management

HOA management including board members can be extremely difficult to deal with. Disputes over rule enforcement, fees, or property upkeep can lead to stressful situations and even legal battles.

5. Limited Control

Owning a property in an HOA community often means surrendering a degree of control. The HOA board has the authority to make decisions that can affect your property and its value. This lack of control can be a significant downside for rental property owners.

When looking to purchase a rental property I recommend first looking at areas without HOAs or seeking an HOA that has very lenient and low association fees/dues.

The point of real estate investing is to maximize your returns while minimizing stress and complications. Let me know in the comments section your opinion of HOA rental properties!

Follow my channel Jobin where we together learn to INVEST, MANAGE & PROFIT from #realestateinvesting.

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Video Chapters:
0:00 - Don't Buy a Rental in an HOA Community
0:30 - What is an HOA?
0:48 - Reasons to Avoid HOA's
1:22 - 1. Strict Rules and Regulations
1:54 - 2. Rental Restrictions
2:28 - 3. High Association Fees
2:52 - 4. Conflict with HOA Management
3:18 - 5. Limited Control
4:00 - What To Do Instead

#hoa #realestateinvesting #passiveincome #buyingarental #investmentproperty

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