Investors-condos? (documents, legal, inspection, renting)

[SLCPUNK]

I'm starting to see some nice SFHs that would cash flow again with 15-20% down. I'm also seeing some dirt cheap condos (usually one bedrooms) that would easily cash flow after the note/HOA/insurance. Some are ridiculously low and seem like a no brainer. I've only dealt with SFHs in the past. Before I start looking at these condos, what are the pitfalls of renting these out? Am I overlooking something? Can HOA make it a hassle to rent? What else could eat away at my cash flow? What questions do I need to ask the HOA?

Thanks.

[middle-aged mom]

Some condo associations do not allow or limit the number of units that can be rented at any given point in time. Owners/buyers of these units often are often willing to pay a premium to not have a revolving door of neighbors.

If a complex is primarily owned by absentee investor owners, ( in non resort areas) it usually shows.

Some condo associations are operating on a month to month basis having exhaused their reserves, meaning that routine maintenance may be deferred. Special assessments might be common.

When buying a condo, it is important to pay up for both a unit and common area inspection. The unit may be fine but if the roof is aged and there are no reserves, a special assessment is likely to happen.

As an owner, you are responsible for the consequences if your tennant break association rules.

[SLCPUNK]

Thanks.

Is there anyway to inquire about the associations reserves prior to purchasing?

[middle-aged mom]

Originally Posted by SLCPUNK

Thanks.

Is there anyway to inquire about the associations reserves prior to purchasing?

My goodness, yes. You want to obtain copies of all financial statments, legal documents and minutes from meetings. Spend the necessary time reading this stuff. The devil is in the details.