1st buy and hold as a condo
Hello everyone,
I joined the bigger pockets community a few weeks ago and already have gotten great responses and knowledge from members. I'm looking to invest in the state of Maryland - Annapolis, Baltimore to Kent Island.
Some of the first deals that hit my criteria have been condo's. The latest is a complicated scenario and I wanted to ask the advice if it's wise to buy and hold or not.
Just spoke with a lender that deals in that community- there's are a large number of foreclosures (around 2008) that put the previous homeowners in default with the HOA, about half the money has been recouped and half still outstanding. To make matters more interesting, two people own over half the of properties in this community and this has made prospective buyers hesitant. The $90 monthly HOA goes toward common area/yard maintenance and the communities master flood policy.
I'm aprehensive about the future of the community. Does anyone have a similar example to talk about or knowledge on what an educated next move would be? Are new homeowners/ existing homeowners liable for the debt the HOA is in? If the HOA defaults what happens to the community?
Thank you
