Condo Developer at the end of his chain (Miami: best neighborhood, rent)

[cyberpine]

I work near downtown Miami. From my office there is this buidling with about 100 units that went up recently. It's not the best neighborhood, but the building looks great and has great bones. I'm looking for a deal mostly.

From what I've understand, the develper owns about 70% of units in the building and maybe 85% of the units are currently occupied. I think 90%+ of the occupants are renters.

Out of curiousity, I walked in and asked the property managment about sales. He gave me some numbers and took my phone. A few weeks later his staff called me tell me he was dumping the units really cheap.

Two big concerns.. and I'll preface these by saying that this is an investment for me and that mostly I'm looking for a deal. This is no high end unit or neighborhood, but that is okay.

That said.

1. What can I expect if I buy a unit and am only one of 30 owners in a building where 70 units belong to the bank or a new private investor buys them all up wholesale?

2. Can the owner sell me a unit if the building has any major problem?

3. Say the owner dumps to the units to an investor who in turn never pays condo fees for 6 months and then just disappears. Can a Condo Association force owners who pay and are current to cover shortfalls due to owners who just dissappeared? What happens when an association is just broke and can no longer afford to maintain services?

Thanks.

[gixxer1000]

1. What can I expect if I buy a unit and am only one of 30 owners in a building where 70 units belong to the bank or a new private investor buys them all up wholesale?

The main thing you need to check is the financial status of the Condo association. Banks are required to pay HOA fees for a time period once they take over the unit, but they may not.

2. Can the owner sell me a unit if the building has any major problem?

Yes, certain things have to be disclosed like asbestos or lead but its up to you to get an inspector and determine the condition of the building.

3. Say the owner dumps to the units to an investor who in turn never pays condo fees for 6 months and then just disappears. Can a Condo Association force owners who pay and are current to cover shortfalls due to owners who just dissappeared? What happens when an association is just broke and can no longer afford to maintain services?

Recent court rulings have given Condo association the ability to take a portion of the rent received if owners don't turn it over. However if the unit isn't rented then there is no rent to take the money from. If multiple units stop paying HOA fees then services are cut and the building falls into disrepair. The condo association can raise HOA fees or apply assessments to current owners to make repairs.