CoOp: Opportunity + Headache?

[Jack Lee]

Hey guys,

I've recently seen a few very nice Coop units that sell for reasonable prices and have tremendous rental potential. Financially, this deal is as solid as it comes. Unfortunately, I am very worried about the Coop.

Does anyone have experience dealing with Coops? It is my understanding that most of them have rigorous ownership standards and require minimum income and credit checks to buy? What about the tenants? Can the owner even rent it out?

The other issue is the Coop maintenance fee. I've seen ridiculous numbers such as $1.5/sqft -not sure if per month or per year..... Can someone give like a ballpark percentage for the maintenance fee?

Thanks