Small Houses Part 3 (Portland, Thomaston: loft, condo, how much)

[Submariner]

Originally Posted by OutdoorLover

I don't know, but I assume we're on the up-and-up - it's actually a fairly common situation around here, and if it were illegal, I think that would have caught the attention of someone by now.

I dont see the problem. It is just a form of a corporation. When someone wrote the by-laws of the corporation, they included that the two owners of the condo units are the members of the corporation board.

I bet there exists lawyers who specialize in this exact feature.

I would not be surprised is the lawyer who wrote it, included his own name in the by-laws as a silent 10% owner of the corporation.

[dubthang]

Originally Posted by Submariner

I dont see the problem. It is just a form of a corporation. When someone wrote the by-laws of the corporation, they included that the two owners of the condo units are the members of the corporation board.

I bet there exists lawyers who specialize in this exact feature.

I would not be surprised is the lawyer who wrote it, included his own name in the by-laws as a silent 10% owner of the corporation.

I just finished spending the last eight years as our association's president, and that's why I asked. I know there are a lot of rules out there that I fully don't understand though. I do know that there is nobody taking a cut. Officers cannot get paid to handle association duties. My association does have a lawyer on hand. Lawyers are needed to ensure that everything is legit when the association is created, and they are needed on an annual basis to file paperwork with the state. .

I would not be surprised if a single person can hold two positions in cases like these.

[Submariner]

Originally Posted by dubthang

I just finished spending the last eight years as our association's president, and that's why I asked. I know there are a lot of rules out there that I fully don't understand though. I do know that there is nobody taking a cut. Officers cannot get paid to handle association duties. My association does have a lawyer on hand. Lawyers are needed to ensure that everything is legit when the association is created, and they are needed on an annual basis to file paperwork with the state. .

I would not be surprised if a single person can hold two positions in cases like these.

A couple of times, in my travels I have been tempted to buy a house in a HOA. Each time, when we looked closer at the HOA, we got the scare of our life. We ran far away.

I am glad that you are happy with your HOA.

You are not going to tell me what color my house must be, or what kind of roofing I must have, or bill me for road maintenance on a road that does not provide access to my house.

[BaltimoreBruiser]

Originally Posted by Submariner

A couple of times, in my travels I have been tempted to buy a house in a HOA. Each time, when we looked closer at the HOA, we got the scare of our life. We ran far away.

I am glad that you are happy with your HOA.

You are not going to tell me what color my house must be, or what kind of roofing I must have, or bill me for road maintenance on a road that does not provide access to my house.

I would also never buy a house that has an HOA. I understand the principle, I really do, and there's something to be said about keeping the neighborhood visually appealing to keep the values higher for everyone.

It's not the fees, its like you said Sub, I could not live in a place that says my fence has to be between this height and this height, that I can't fly a sports team flag out along with Old Glory, that I have to apply for HOA approval for any sort of remodel or exterior fixtures.

[OutdoorLover]

One important reason many people buy a unit in a duplex is affordability. I couldn't afford a stand-alone house in my current town. Getting a place that's all my own is something I look forward to when I build in Maine.

When it comes to larger condo associations that actually provide services, many older people do that to offload the hassles of yard upkeep, painting, etc., similar to what you might get in a 55+ community...

[nm9stheham]

Originally Posted by dubthang

How does this work for having an association? With only two units, you don't have enough people to fill the required rolls for officers.

Any one person can fill multiple corporate rolls. My son and wife I have a corporation....I am president and treasurer. It gets filed that way with the state corporation commission. Not anything new or unusual.

[nm9stheham]

Originally Posted by BaltimoreBruiser

I would also never buy a house that has an HOA. I understand the principle, I really do, and there's something to be said about keeping the neighborhood visually appealing to keep the values higher for everyone.

It's not the fees, its like you said Sub, I could not live in a place that says my fence has to be between this height and this height, that I can't fly a sports team flag out along with Old Glory, that I have to apply for HOA approval for any sort of remodel or exterior fixtures.

Very much understood. But it can vary so widely. A lot has to do with the bylaws and covenants. So any step in the process of looking at a property with an HOA includes looking at the bylaws.

I was an HOA board member and treasurer in an HOA in the Outer Banks of NC. The main things for that HOA were maintaining the roads, beach accesses, and running an architectural committee. The homes were all owned by individuals but rented heavily to vacationers, and the development was higher end. everyone was 'in-tune' with keeping things pretty uniform to protect investments, attract vacationers, etc. So that one worked well.


Fast forward to the HOA in the WY ranch development that we're in now. The HOA just went through an episode of one troublemaker gaining heavy influence on the Board, and a couple of residents ended up getting sued by the HOA.. on matters that had nothing to do with property values. Just because of that one individual board member. She is a retired IBM corporate attorney with some real 'issues' in effectively dealing with people, and reportedly has made the same trouble in HOA's in TX and CO. It is a relaxed neighborhood and enough people got incensed to kick her off the board at the last election this past fall. Things are a lot better now!

So yeah, they can be good or they can be bad. I did not join the HOA in our home in VA, just to not encumber the property with possible problems. Planning and zoning boards have been requiring them for years in many/most states in many/most new developments, to offload road maintenance to the residents, not the state or city or county.

[Submariner]

Originally Posted by OutdoorLover

One important reason many people buy a unit in a duplex is affordability. I couldn't afford a stand-alone house in my current town.

In my travels, I have had opportunity to shop for homes in different states/countries, a few times. Among my observations is as you have said. To buy a Duplex, live in one side and rent out the other side, is far more affordable than buying a Single-Family-Residence.

However I feel I should point out. If you shift your gaze from Duplexes over to Triplexes, then you come into a sweet spot. You can live in one unit and rent out the other two units. Two rents will often cover the mortgage, insurance, property taxes, water, sewer and garbage bills.

[PAhippo]

Also with a duplex, one tenant moves out you've got no income coming is. With a triplex, if one tenant moves out at least you've still got the rent from 1 apmt.




been there, done that.

[Submariner]

Originally Posted by PAhippo

Also with a duplex, one tenant moves out you've got no income coming is. With a triplex, if one tenant moves out at least you've still got the rent from 1 apmt.

That 'sweet spot' of a Triplex is nice.

Once we tripped into it, that was enough to convince us to only buy Tri-plexes, Four-plexes, or five-plexes. As a result we went a long time [20 years] without making any mortgage payments from my salary income.