Real Estate Broker · Lynnwood, WA · Member since 2013 · 11 posts · 0 votes
I'm just getting my Brokers License and doing a lot of research to provide a quality service through wholesaling in my family owned business, United Family Investments. I've come across this situation and i'm not sure if i should pursue it.
The owner is asking 55k on a 2/1 completely remodeled condo in northern Seattle. Owner still owes 70k but says he/she will cash out the loan on date of sale. Great location, rented currently with good tenant for $1500, HOA's are 350 a month. The odd part is that on Feb. 1st the buyer/owner must pay 43k for exterior renovations through the HOA classified as a special assessment. I assume this is why the owner wants out, to pay 15k instead of 43k to get out of the situation. If i did pursue this as a wholesaler I would try to purchase at 50k and sell at 55k to an investor ready to pay the special assessment.
It seems like a unique situation with the upfront cash for an investor of 100k but i think its worth it, thoughts?
Investor · hampton, VA · Member since 2009 · 428 posts · 249 votes
12y
wow, I hv been there..... I had an hoa tell me they have the option of
1. doing the needed repairs and spreading the special assessment out over several years and raise the monthly hoa only a few hundred for each owner hence paying for the repairs over time, or
2, doing the repairs and charging a 1 time payment for all owners which will be a very high payment which will pay for the needed repair in full.
Either way u will never know when an hoa could deem a needed repair and give u a notice to pay, esp in a building.... if this info helps you in any way pls vote for this post. Good luck...