Condos

[Pauline Charlton]

I am evaluating the feasibility of investing in a condo that is over 30 years old and probably needs updating. What issues could come up when there is no homeowner's association? 

I suspect that repairs will be an issue pretty soon.

[Bill Higgins]

To give you something to compare against. I have a condo in Galveston, Texas, where the HOA fees are $330/month and the property is very well maintained even though it was built in the 80's. We have a quarterly association meeting where we discuss in depth the maintenance of the building and grounds...in fact, we're reviewing options for roof repair right now, but it's not likely to cause an assessment. (https://www.vrbo.com/759936)

I put over $135k in this unit (not including furnishings) but I know the MFV is only $120k.   I'm OK with this approach because my expenses are manageable, I can manage it remotely and my CapRate is north of 20% in the first year.  Because of the price point, I could sell it to a cash investor who recognizes the value of the cash-flow and get more than my capital back out of it.  

There are numerous properties like this, it just takes time to find the right balance of purchasing in an older complex (lower cost) that's well maintained.