High HOAs to bring complex back to standards

[Bridget Pasternak]

Hi all. Working through analyzing some properties for my first deal. A few properties have caught my eye. They are condos close to the hospital and major commercial area. The situation is that after the crash, a lot of owners in this complex (and many in the area) got foreclosed on and the banks did not pay the HOA fees so no maintenance was done. Now that the market has stabilized, the owners voted to raise the HOA fees for a period of time in order to do the necessary maintenance that was neglected. Right now the monthly fee is quite high (to avoid a special assessment). There are a few units available and some have been sitting out there for a while. I'm assuming people are scared of the HOA fee. When I look at them, I could squeeze out a tiny cash flow as they are now, but I envision that after the maintenance is complete and the HOA fee goes back down to a reasonable level, we will see prices rise and buyers show interest in this complex again. Then I will make a nice cash flow and probably some appreciation. What are your thoughts on this? Am I missing something? Do you think this is a good or bad idea for my first property?