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If you are wanting to live surrounded by tenants, just rent an apartment instead of buying your apartment. If you are renting and the neighborhood goes south, you move. If you have bought and the neighborhood goes south, you are either stuck or going to take an enormous loss.
If you are wanting to live surrounded by tenants, just rent an apartment instead of buying your apartment. If you are renting and the neighborhood goes south, you move. If you have bought and the neighborhood goes south, you are either stuck or going to take an enormous loss.
I should add that the seller "has already paid" the assessment. Does that help?
Paid some current assessment you mean. Future ones could pop up at any time. If they're already playing catch up because of neglect, chances are there will be more. You'd need a crystal ball to prove otherwise. Does it help? Not really. I don't have a crystal ball.
...a condo in a small town that is currently 70% rental, including Section 8, with no cap on renting (could be 100%). Very few owners. Employs a property manager who supposedly oversees repairs, but doesn't handle leasing for owners -- unless they use her company and pay 10% of rent! Recent assessment of $13k (per owner) for delayed maintenance issues (leaky flat roof, missing shingles, actual holes, all decks must be replaced due to dry rot) and HOA of nearly $400 -- at least $200 over average -- for 700 sf mostly due to "all hot water coming from an inefficient common hot water heater/boiler"...or something? Owner VERY motivated to sell; could low-ball. Also has some pluses.
As I type it, it sounds awful, but I love it! Love is blind...
No, I wouldn't buy this because the HOA is poorly managed, and there are too many rentals. Bad things happen to good people and being able to quickly sell an asset is important unless you are so rich you don't care if you lose money.
If you are wanting to live surrounded by tenants, just rent an apartment instead of buying your apartment. If you are renting and the neighborhood goes south, you move. If you have bought and the neighborhood goes south, you are either stuck or going to take an enormous loss.
Quote:
Originally Posted by rokuremote
Great advice.
2nd that.
The complex sounds poorly and cheaply built - a money pit.
There will be other assessments - with the for profit company overseeing - they sound incompetent to me.
Unless particularly well run and funded I would only consider a condo in a 55+ community with lots and lots of rules (usually it has to be 95% owner occupied, etc. they are kept up and not allowed to deteriorate, etc.
...a condo in a small town that is currently 70% rental, including Section 8, with no cap on renting (could be 100%). Very few owners. Employs a property manager who supposedly oversees repairs, but doesn't handle leasing for owners -- unless they use her company and pay 10% of rent! Recent assessment of $13k (per owner) for delayed maintenance issues (leaky flat roof, missing shingles, actual holes, all decks must be replaced due to dry rot) and HOA of nearly $400 -- at least $200 over average -- for 700 sf mostly due to "all hot water coming from an inefficient common hot water heater/boiler"...or something? Owner VERY motivated to sell; could low-ball. Also has some pluses.
As I type it, it sounds awful, but I love it! Love is blind...
The delayed maintenance issues would be a huge concern for me as it's an indicator of a poorly managed COA.
Other questions I have are: What is the plan to replace the water heater/boiler (and cost to do so)? When the water heater is replaced, will the monthly COA fee be reduced? What other issues are there with the building?
The second concern I'd have is being a permanent resident amongst so many temporary residents. Vacationers just won't care as much about building rules as permanent residents do. "No smoking on the balcony" - you can definitely expect people to ignore that rule.
I'd also look at the rental advertisements: how many people are they saying the condos will accommodate? Are they renting for cheap or are they expensive rentals? Where in the building is the condo located? Is it near an elevator or stairwell? How much "traffic" can you expect passing by your door?
Is this a "party" beach that attracts a lot of singles, young people? Or is this more laid back beach that attracts families and more mature folks?
Personally, I might consider it for an investment property, even then that's risky with the condition of the building resulting in large assessments, but would pass on it as my home.
It's not short-term rental; it's long-term, including Section 8. I currently pay about $10/month for my water (it's often included in an HOA because it's so cheap), so I can't imagine why it would boost the maintenance fee $100+ above average.
Also, is it normal for a complex to employ a property manager who doesn't even handle leasing?
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