HOA Assessments - any experience?
I am considering buying a portfolio of 7 condos in Memphis, TN. They are in a great area, big upside potential. Everything about this deal looks great. But I am nervous about working with an HOA. This is my only hang up.
My biggest concern is being hit by special assessments X7. Yikes! Anyone have experience investing in condos? I can see some of the perks as they deal with everything outside, common areas and amenities, but this feels like a big con to me!!
I have already asked the listing agent:
1. how frequently special assessments have been done in the past and the amount.
2. to see the income/expense report to verify.
Waiting on answers to both. I can imagine how this could NOT be good, but I have also heard stories of people having great experiences with condos.
NOTE: I would be setting aside $100/month per unit for cap x and maintenance. Don't want all of that to go to assessments, but it could when necessary.
Any insight would be appreciated. Even recommendations for questions to ask in addition to those mentioned above (have not owned a condo) would be a big help. I want to get a better idea of how the HOA is managed but this is all new to me.
Thanks team!
Jenny