Hello- I have an accepted offer in, with 15 days to review HOA books and records. Any input on this deal would be appreciated.

It is a villa in a condo development of 150 units in Longboat Key, FL. It is directly accross the street from the gulf. The complex was built in 1974, consists of 5 midrise 3 story condo structures and 9 villa buildings with 3-4 units per. The property has good amenities- 2 pools, tennis courts, boat slips on the bay side, excercise room, etc. Large well landscaped property. Tight HOA restrictions, well kept, only monthly or longer rentals, limit two tenants per year.

The unit is a 1 BR 1 BA end unit, closest to the road and beach 800 sq. ft., 120 sq. ft lanai. It is fully furnished and in excellent condition. Recently redone kitchen with granite, carport, washer/dryer in utility room. Rents typically $2500 during high season. We are looking to rent it high season only. Price $75,000. Asking price was $99,900. Seller paid $82k in April 2012. Property is assessed for taxes at $122k, taxes $2100.

Where it gets complicated is with the HOA fees and special assessment. HOA fee is $653 monthly, which includes $100 reserve. Cable, insurance, water, trash, pest control, etc. are included. This is about $100 higher than a lot of units on the island.

Identical units in the complex sold for as high as $245k before the crash.

The complex is undergoing renovations. Two of the villa buildings have been done at a cost of about $650k per- new stucco, roofs, windows, replace damaged wood, drywall, barrell tile roof trim, landscaping. The results look very good.

When this building is done, we have the option of retaning the slab only of the lanai as a patio or having the lanai rebuit as part of the regular a/c living space at our expense $12-15k. We could then maybe convert it to 2 BR 2 BA.

The midrises, although looking good on outside, have water intrusion issues on bay side from windows, etc. A recent engineering report was done showing this and some support and horizontal structure damage over the years, also. One of the buildings has already had some window replacement and stucco replacement.The HOA is currently evaluating the reports and figuring how to tackle the issues. It has not yet been determined if all issues presented will be repaired and when, nor has a dollar cost for the proposed repairs been issued.It is common for structures this old on the island to have issues.

There is a current annual special assessement for 2013 of $4200, paid in monthly installments. The same assessment was levied last year. The HOA has a history of generating no huge lump sum assessments, mostly pay as you go.

One last wrinkle, an end unit on opposite end of same building sold through foreclosure in 2012 unfurnished for $57k, no side yard, next to encased dumpster. Had sloping floor, unsure if any other issues.

Is this a great deal or not? The big risk seems to be the certain special assessments continuing. The realtor says to plan on the $4200 for 4-5 years. We are reviewing the midrise engineering reports, already have villa reports to try to put a number to worst case total complex repair costs.

The upsides include-

-potential substantial price appreciation. Longboat Key is very desireable.
- refurbished villa should be worth more, certainly look better.
-potential to convert to 2RB, 2 BA during refurbishing.
- rental income potential of approx. $10k per yr. to offset costs.

Downsides-

-unknown extent of repairs and costs.
-high HOA fees.
- unit is closest to beach, but also closest to Gulf of Mexico Dr. roadnoise that is busy during high season.

Thank you for any input and endurring this short novel.