Seattle condo owner listing it with special assessment?

Question

I'm just getting my Brokers License and doing a lot of research to provide a quality service through wholesaling in my family owned business, United Family Investments. I've come across this situation and i'm not sure if i should pursue it.

The owner is asking 55k on a 2/1 completely remodeled condo in northern Seattle. Owner still owes 70k but says he/she will cash out the loan on date of sale. Great location, rented currently with good tenant for $1500, HOA's are 350 a month. The odd part is that on Feb. 1st the buyer/owner must pay 43k for exterior renovations through the HOA classified as a special assessment. I assume this is why the owner wants out, to pay 15k instead of 43k to get out of the situation. If i did pursue this as a wholesaler I would try to purchase at 50k and sell at 55k to an investor ready to pay the special assessment.

It seems like a unique situation with the upfront cash for an investor of 100k but i think its worth it, thoughts?

Kris Haskins · Answer

wow, I hv been there.....    I had an hoa tell me they have the option of

1.  doing the needed repairs and spreading the special assessment out over several years and raise the monthly hoa only a few hundred for each owner hence paying for the repairs over time, or

2,  doing the repairs and charging a 1 time payment for all owners which will be a very high payment which will pay for the needed repair in full.

Either way u will never know when an hoa could deem a needed repair and give u a notice to pay, esp in a building....  if this info helps you in any way pls vote for this post.    Good luck...

Corey Davis · Answer

You haven't mentioned the value of the property.

Adam Price · Answer

Its 2013 appraised value is at 70k but i've seen in the past 6 months similar condos go for 120k.

Thanks Kris for the input! this is what worries me, all the power the association has over you.