20 unit walkup building on UES... no reserve? (renters, co-op)

[eddiep83]

Realtor says this is normal for small walkups, another similar co-op I saw only had 45k in reserves.

Do these smaller walkups generally have low or no reserve funds?

[urbandweller13]

who cares? this is a financial disaster waiting to happen.

[BugsyPal]

It means shareholders are living in a state called denial. One lawsuit judgment, major problem with heating system/boilers, major maintenance cost or such and every single one of them will be looking at a huge assessment.

Am betting this probably a building where former renters clubbed together back in the 1980's or 1990's during the co-op *boom* and purchased the building to become "owners" of their own destiny. Now they are cheaping out to keep costs down.

[bluedog2]

Originally Posted by eddiep83

Realtor says this is normal for small walkups, another similar co-op I saw only had 45k in reserves.

Do these smaller walkups generally have low or no reserve funds?

This is not normal. In fact,if you had to get a loan to purchase in a co op with no reserve fund chances are most banks wouldn't touch the place. They usually want to see at least half a year's operating budget in reserve,preferably more. Many co ops maintain a full years expenses in reserve.

[nei]

I misread the title as 20 story walkup building on UES. For tenants who want more exercise?

[BugsyPal]

Originally Posted by nei

I misread the title as 20 story walkup building on UES. For tenants who want more exercise?

Even a five story walk-up is a bit much after you reach fifty or so. Know of older tenants in those five or six story UES/UWS walkups that only come down stairs once a day or sometimes not even then.

[Kefir King]

"Oh honey, I forgot my wallet."