Advice on Condo Financials
A condo we are interested in purchasing is currently under the attorney's review. It is a 20-unit townhouse/condo with upstairs/downstairs and has an HOA of ~$275 per month. The condo has a reserve of ~$18,000 and checking balance of $9,500. Last year, there was an assessment of $6,500.00 (~27 per unit per month), and this year, there was an assessment of $8,000.00 (~33 per unit per month). There was a negative net income of ~6000 for 2023, negative net income of ~$400 for 2024.
I am waiting to hear back from management regarding any large capital expenses in the upcoming years. I know that they have to pay for the audit and reserve study for 2026, which will be around $7,500.
This condo is one of the few in my county where I can have a positive cash flow with only 20% down. The unit is fully renovated, featuring brand-new appliances, including a new water heater.
I want to know if these types of figures for a small condo unit are normal or I should walk away. My prior purchases are in much larger complexes, and their reserves are much larger as a result.
thank you in advance