condo-risky?

[Terry Hoefer]

We're seriously considering a 2 br 1.5 ba condo, listed at $39,900. Needs about 10-15k cosmetic work. Resale would be 75-80k. The catch?  Of the 32 units, 12 are rented, so underwriting could be a problem for buyers when we go to sell. Because of this our plan B, renting it out would be turned down by the association at this point. We would be paying all cash. Any advice?

[Chris Seveney]

You could Always owner finance if there were FHA issues due to number of investor owned properties. Also check on the financial health of the condo. We just bought a condo from homepath for $25k and we plan to put $10k into it and rent it. It will have an ARV of $55k. While i see a lot of people frown upon condos, they do limit for capital expenditures As if you do your due diligence you can greatly reduce any capex or costs which are surprises