While looking for investment properties, you will most likely find the term HOA. It stands for Homeowner Association and millions of homes are governed by them.

Here are some Pros and Cons to help you decide whether HOA is an option for you:

PROs

• Amenities like club house, fitness center or pool are provided
• Less responsibilities as there is management on site that can take care of e.g. snow removal or maintenance
• Keep up proper appearance to prevent e.g. neighborhood decline.

CONs

• HOA can foreclose on your home if you get behind as “last resort”. The process of doing so, varies by state.
• There might be limitations to rent your place such as HOA board approval of tenants or minimum lease terms.
• You might need to participate in expenditures as HOA’s cash reserves are typically underfunded.

Sources: https://www.allstate.com/blog/homeowners-associations/ , Community Associations Institute