Updated over 7 years ago on . Most recent reply
Starting out: Buying an income Property in Denver
I submitted a cash offer for a one bedroom condo on a short sale, in the heart of Denver. This is my first experience with a short sale and an income property of my own. I understand that typically condos are not considered the best option for income properties, however, this property met almost all of my criteria for making an offer. I am just a bit leery of the HOA. The management company is not exactly generous with information over the phone and the paperwork they want me to order will cost over $300 just to answer some pretty simple questions like, can I expect special assessments and if so how much? There appears to be some deferred maintenance in the building but the location is strong enough that I believe this will make a good long-term rental. Any recommendations on how I can scrutinize the value of this investment?
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Did you not request that the seller provide HOA docs in the contract? I'd lean on your agent to put pressure on them. You are going to have to look at their financials, read their minutes, check out their rules, etc. A bad HOA can really hurt an investor. One of my clients was going to buy a deal similar to yours until I found out that there was a $30k assessment looming in the future. You'd never know unless you went back to read the meeting minutes since it wasn't official yet.
Call the HOA president. Sometimes they will be more forthcoming.