Off market good deal - $415K and $4,400 in rent - but HOA lien?

[Graham Smith]

Hi BP!

Our neighbor is willing to sell his place to us before putting it on the market. It is in the process of being rehabbed and he wants to sell it for $415K to us.

It looks like rental comps are $4,400/month for this place. However, he is $5k delinquent on his HOA fees and is in the process of a pretty good rehab that will be done in 1 month. Not sure if he has tax liens on it.

What should I be aware of in this kind of off-market deal? We would do a 20% down bank loan to buy it.