Author Topic: Sell or keep  (Read 465 times)

jackieapple

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Sell or keep
« on: October 06, 2020, 04:27:29 PM »
I have a dilemma and hope that someone smarter can help.
Have a house bought for 175k. Paid off and have tenants. Tenants have lease till June next year.
The expenses I have to pay monthly includes $70 property management, $34 HOA, $90 for pool maintenance. The rent is $1700.
The HOA has been harassing me about weeds in the property. I'm getting up to four warnings the past month. It didn't use to be this bad I'm not sure why they have been aiming at my house.
The contract states that the tenants need to take care of the yards which I don't think they are doing a bad job. It just seems the HOA is nitpicking on little weeds here and there.
Right now I can sell the house for 300k. But I would have to pay the HOA a cut if I do sell while the tenants are still there.
I'm planning to move back in 1.5 years permanently but would want to buy a house in a different location (w/o HOA).

There are a few scenarios running through my head at the moment:
I'm willing to sell it but wait till the lease is up and until I can return. I feel like if I'm there I have more controls over the selling process.
I could just hold on to it forever since it's paid off and try to working something out but just paying for a landscaper and not dealing with the headache if arguing with the HOA all the time.

Any suggestions is appreciated.

SndcxxJ

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Re: Sell or keep
« Reply #1 on: October 06, 2020, 07:27:20 PM »
I include a weekly gardener at all of my rentals.  They keep the place looking good and they tell me if they see anything out of the ordinary (like a unpermitted dog, or trash, or anything else).  The places are always look rent ready, so if I get a 30 day notice that someone is moving I can tell any prospects to take a look at the property and it is looking good from the outside.
Your situation in particular might be different.  If the tenant is keeping up the yards and doing a fairly decent job, then just follow the HOAs letters and have the tenant tighten up their work.  Eventually the tenant will figure out how to keep the HOA happy and the HOA will get tired of sending letters.  Don't let the harass you into taking a financial hit, or doing something you don't want to do.  Now, of the resident isn't doing a good job with the yards then bringing in a gardener might be a good solution to everyone involved.

jackieapple

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Re: Sell or keep
« Reply #2 on: October 07, 2020, 09:38:25 AM »
Thanks I appreciate your feedback. I will just play it by ear for now. Hopefully the HOA will calm down soon.

sammybiker

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    • Making 200k in equity in 6mo - Back down the rabbit hole, long distance RE
Re: Sell or keep
« Reply #3 on: October 07, 2020, 10:26:02 AM »
For a paid off home that is cashflowing well, I think you'd really need to share your overall financial picture and what you may need in terms of cash or cashflow for the coming years.

Surely you could sell and redeploy $300k for better yields but they will also include larger headaches.

When I get HOA letters, I send them direct to the PM and let them enforce them with the tenants, including any fines associated.

Regardless, nice work on the payoff and appreciation.

Jon Bon

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Re: Sell or keep
« Reply #4 on: October 07, 2020, 01:48:58 PM »
I have a dilemma and hope that someone smarter can help.
Have a house bought for 175k. Paid off and have tenants. Tenants have lease till June next year.
The expenses I have to pay monthly includes $70 property management, $34 HOA, $90 for pool maintenance. The rent is $1700.
The HOA has been harassing me about weeds in the property. I'm getting up to four warnings the past month. It didn't use to be this bad I'm not sure why they have been aiming at my house.
The contract states that the tenants need to take care of the yards which I don't think they are doing a bad job. It just seems the HOA is nitpicking on little weeds here and there.
Right now I can sell the house for 300k. But I would have to pay the HOA a cut if I do sell while the tenants are still there.
I'm planning to move back in 1.5 years permanently but would want to buy a house in a different location (w/o HOA).

There are a few scenarios running through my head at the moment:
I'm willing to sell it but wait till the lease is up and until I can return. I feel like if I'm there I have more controls over the selling process.
I could just hold on to it forever since it's paid off and try to working something out but just paying for a landscaper and not dealing with the headache if arguing with the HOA all the time.

Any suggestions is appreciated.

I am going to need you to explain this too me!

jackieapple

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Re: Sell or keep
« Reply #5 on: October 07, 2020, 05:20:20 PM »
For a paid off home that is cashflowing well, I think you'd really need to share your overall financial picture and what you may need in terms of cash or cashflow for the coming years.

Surely you could sell and redeploy $300k for better yields but they will also include larger headaches.

When I get HOA letters, I send them direct to the PM and let them enforce them with the tenants, including any fines associated.

Regardless, nice work on the payoff and appreciation.

Thank you, I was super happy to have it paid off. I guess my emotions got the best of me. I was getting tired of getting all the letters from the HOA. Now that I've calm down a bit, I agree that I will have to work closer with the PM.

jackieapple

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Re: Sell or keep
« Reply #6 on: October 07, 2020, 05:21:29 PM »
I have a dilemma and hope that someone smarter can help.
Have a house bought for 175k. Paid off and have tenants. Tenants have lease till June next year.
The expenses I have to pay monthly includes $70 property management, $34 HOA, $90 for pool maintenance. The rent is $1700.
The HOA has been harassing me about weeds in the property. I'm getting up to four warnings the past month. It didn't use to be this bad I'm not sure why they have been aiming at my house.
The contract states that the tenants need to take care of the yards which I don't think they are doing a bad job. It just seems the HOA is nitpicking on little weeds here and there.
Right now I can sell the house for 300k. But I would have to pay the HOA a cut if I do sell while the tenants are still there.
I'm planning to move back in 1.5 years permanently but would want to buy a house in a different location (w/o HOA).

There are a few scenarios running through my head at the moment:
I'm willing to sell it but wait till the lease is up and until I can return. I feel like if I'm there I have more controls over the selling process.
I could just hold on to it forever since it's paid off and try to working something out but just paying for a landscaper and not dealing with the headache if arguing with the HOA all the time.

Any suggestions is appreciated.

I am going to need you to explain this too me!

I know this sounds ridiculous. I guess I was naive when I agreed to this term and not understanding the reason behind it.