What is a Home Owner’s Association (HOA)?
A home owners association (HOA) is an organization that is put together by a real estate developer when planning a new development project. This management organization sets the rules and regulations of a community and is in charge of the upkeep of common areas within a development such as pools or landscaping.
As a real estate investor HOA fees are something you have to account for in your holding cost estimates and there may be additional regulations you have to follow when rehabbing the property. For example, some HOA’s have rules when it comes to the types of exterior colors that are used when painting a home.
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