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/u/nm062
Guest
Hi everyone,
I currently live in a high cost of living (HCOL) area, where my rent is around $3,000 per month. I’m exploring the idea of buying a property to live in, with the longer-term goal of building a portfolio of rental properties.
That said, I have two major concerns, and I’d appreciate any advice or perspective:
1) HOA Fees:
Many of the properties I’m considering come with HOA fees ranging from $500 to $1,000. While that feels steep, I wonder if it’s a worthwhile trade-off. My thought process is that, even though HOA fees are essentially sunk costs, if I’m building equity and reducing what I’m “throwing away” on rent, it might make sense.
There’s also the possibility of eventually passing the HOA cost onto a renter, should I decide to rent the property out later. However, the current high interest rates make it tough to find a property that would cash flow. Is it reasonable to assume I can refinance down the road and improve cash flow later?
2) High Interest Rates:
The high interest rates right now are definitely a challenge, but it’s hard to predict when they’ll come down. Should I wait and hope for better rates, or should I take the plunge now and adjust my strategy later?
Any thoughts, advice, or personal experiences would be incredibly helpful as I navigate these decisions. Thanks in advance for your input!
submitted by /u/nm062
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Seeking Advice on Buying a Property in a High Cost of Living Area
Continue reading...
I currently live in a high cost of living (HCOL) area, where my rent is around $3,000 per month. I’m exploring the idea of buying a property to live in, with the longer-term goal of building a portfolio of rental properties.
That said, I have two major concerns, and I’d appreciate any advice or perspective:
1) HOA Fees:
Many of the properties I’m considering come with HOA fees ranging from $500 to $1,000. While that feels steep, I wonder if it’s a worthwhile trade-off. My thought process is that, even though HOA fees are essentially sunk costs, if I’m building equity and reducing what I’m “throwing away” on rent, it might make sense.
There’s also the possibility of eventually passing the HOA cost onto a renter, should I decide to rent the property out later. However, the current high interest rates make it tough to find a property that would cash flow. Is it reasonable to assume I can refinance down the road and improve cash flow later?
2) High Interest Rates:
The high interest rates right now are definitely a challenge, but it’s hard to predict when they’ll come down. Should I wait and hope for better rates, or should I take the plunge now and adjust my strategy later?
Any thoughts, advice, or personal experiences would be incredibly helpful as I navigate these decisions. Thanks in advance for your input!
submitted by /u/nm062
[link] [comments]
Seeking Advice on Buying a Property in a High Cost of Living Area
Continue reading...