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...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...
Maybe…….. you have to determine, realistically, what your ROI would be.
Location is very important. Years ago I considered such a condo. But location was wonderful. I passed with no regrets. However I do follow the real estate activity and it looks like their HOA fees have stabilized are are closer to market and resale is doing ok in the complex.
I should add that the seller "has already paid" the assessment. Does that help?
That helps, but you are describing a complex where "investors" withhold needed capital funds, ergo the huge assessment for long overdue repairs.
I owned a couple of rental condos in such a complex. 70% NOO, Non-Owner Occupants.
Hard to sell, because Fannie and Freddie don't want to guarantee the mortgages in such complexes. IF mortgage money is available, it will generally be at lower LTV and higher interest rates.
Good catch!
But seriously folks...
I might choose to live in a truck before buying in a dead end development like that. My wife's friends lives in one like that and it was abominable. And it was sandwiched between other really nice owner occupied developments.
These sorts of developments rarely, if ever, manage to pull themselves out of the swamp.
...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 consider that unless I had completely lost my mind.
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