Your thoughts on this foreclosed condo which has no HOA
Hello Everyone,
I am new to the world of real estate investing and would like to hear from experts on this condo opportunity in a 3 unit building I have in front of me. Here are the facts as I know them:
LP: 130K
Taxes: 4K / year
HOA: 0
Potential Rental Income after fix-up: 2K / month
Since the property has been foreclosed, it has:
1. no working heat. It has a separate heating unit in basement, which appeared to be off and very old.
2. no electricity. Probably cut-off by PSEG for non payment of bill
3. no appliances
4. Building has no condo association and therefore no insurance and HOA dues.
5. leak stains on the roof. No active leaking. Since no HOA, I will be responsive for the roof as this unit is on the top floor.
My main concern is that the building has no HOA and no insurance. How does that affect me as an investor and what steps should I take while approaching this opportunity.
Regards
Sandeep