Buying an apartment/condo to rent out.. thoughts?

[mikehn]

If the administration would make HOA fees tax deductible, that would be a huge game changer, huge game changer, whether federal deductible or even just state deductible

 

[tvguy]

If the administration would make HOA fees tax deductible, that would be a huge game changer, huge game changer, whether federal deductible or even just state deductible

Aren't they already deductible as one of the costs of doing business for the landlord, just like insurance, property taxes, upkeep, etc?

 

[mikehn]

Yes business expenses are already deductible. I meant for homeowners. I wasnt clear on that

 

[_19disnA]

I doubt any modification to tax laws will change the basic economics of owing/renting. Tax deductions are typically only a % of the amount you claim. People who talk about renting out property as some huge source of income isn't reality in most cases from what I have seen when you consider ALL of the involved costs.

If you own a place in a popular resort/vacation location, you are in competition with everyone else who is also renting. You can only charge what is reasonable for that market or people will simply rent elsewhere.

 

[DCLMP]

I wouldn't do that right now.

I would really take some time to research the Florida housing market....I would research it on national level too. I suggest a deep dive into this.

 

[barkley]

if you go ahead with this and decide to utilize a property managment company MAKE SURE they are heavily insured as it pertains to their liability. a friend had a rental home and granted it was being rented for more than a week or two at a time BUT her property managment contract read that the company was supposed to do full in person visual inspections of the property (inside and out) at specified intervals (and it spelled out the frequency). turns out the company would just glance in and do an occasional drive by so they never saw the water leaking that ultimatly destroyed an entire home's hardwood floors, caused mold in the walls....her company DID have insurance-which i'm guessing they lost after many tens of thousands of dollars they had to pay out for repairs (and lost revenue).

 

[_19disnA]

Also good to consider what the insurance costs are and how they are increasing in places having the highest risks from major storms like hurricanes. Several older threads mention the issue in Florida when some insurance companies stopped offering coverage and the ones remaining have significantly increased rates. Whether or not you think global warming/climate change is real, insurance companies base their rates on actual claims as well as the potential for future major storms. Owning somewhere with the idea of renting doesn't change the fact that insurance rates will likely rise significantly (or coverage harder to obtain) in areas where there is the greatest risk.