Condo in a two-family -- Safe to buy? (Somerville: real estate, renters)

[puzzlingconcept]

I'm not a first-time home owner, but this is the first time I'm considering buying a condo in a two-family house. The house is in Somerville and, not surprisingly, a century old. There are some issues that we would want fixed (a little plumbing and wiring--the norm) we would want taken care of that we know would be problems at inspection, but if we buy it, should we be concerned about the other owner?

The other owner lives out of state (NH) and rents his unit out. He also handles the association bank account.

My question is... How does this normally work? Is it safe to rely on the other owner to do his part if the deck collapses, for example? Is there recourse if the other owner doesn't want to do repairs?

I realize this is a case-by-case thing, but this is all foreign to me. Is it ok to but a place in a two-unit, or is it a general no-no that will cause you a lot of grief?

[goyguy]

I'd proceed carefully, particularly since the other owner doesn't reside there. People never look at a place they live in the same way as they do a place that they're holding strictly as an investment.

My condo is in a converted three-decker, and relations within the owners association haven't always been rosy. At present there are numerous unaddressed maintenance issues - including clogged gutters - because my fellow trustees simply refuse to meet. (It's not a matter of compatibility or temperament. They just will not commit to a time when we can all get together. So our fees collect interest and work gets put off.) Both the other units in the house have had two transitions in ownership during my time here. It's only under the current arrangement that the tenants of the remaining condos haven't been squabbling. And - bear in mind that all this is transpiring while every unit is owner occupied. Having the other unit's owner, in the OP's case, not only be absentee but also in control of the checkbook raises cautionary flags.

Much would depend on the quality of the tenants. Drive by on some Saturday night and see whether a loud party's taking place, or if the lights are on and all is quiet from the street. Also take a stroll around the area some afternoon and strike up conversations with neighbors. The building next door to mine is 2/3 absentee-owned, but the renters are pleasant and responsible people. If the person(s) you'd potentially be sharing a ceiling/floor or a common wall with are OK, I'd feel somewhat better about recommending the purchase of the other unit.

[puzzlingconcept]

Thanks for your input. We did get the latest bank statement from the seller's agent. It looks strange at first glance: No is money coming in (condo fees from both units?) and no money is going out (water/sewer?). The statement is for the whole of last month.

[Hollytree]

Well there you have it- run like hell.

[goyguy]

Yep! There are lots of fish in the real estate sea these days. Cast your line elsewhere.

[merwin101]

Originally Posted by puzzlingconcept

We did get the latest bank statement from the seller's agent. It looks strange at first glance: No is money coming in (condo fees from both units?) and no money is going out (water/sewer?). The statement is for the whole of last month.

I own a condo unit in a two family, and our bank statement often looks like that. We deposit a year's condo fee up front in January (I just find that easier than making deposits every month), and many months there are no bills due. The only regular bills are water/sewer (2x a year) and master insurance (4x a year).

I'm not trying to talk you into buying the place; just providing a legitimate example of why a statement may look like that.

[MikePRU]

As part of the purchase process you should have the opportunity to review the financial documentation of the association (i.e. the balance sheet and the budget). These will give you a great deal of insight into the financial health of the association.