Tell me if I should buy this Condo

[Matt F.]

Hi all,

I am looking at a condo for sale at $171,000 in cash that needs $6k of work as a rental. ARV of $195k. HOA fee is 210/mth, Taxes $80/mth, Ins $25/mth. Rental rate is $1800/mth.

I am happy with the cash flow, the problem is the HOA has a unit not paying their dues (greater than 15% of the total condos) and the HOA is litigating, which makes it a non warrantable loan, and the reserve funds are low ($10k remaining across 5 units) The condo is the cheapest 4bd 3bth unit in the area which interested me, the thing I am worried about is not being able to cash out refinance and getting hit with more assessments as the reserve fund is low. Is the decent cash flow (best available in the area at this time is seems) worth taking on the HOA risks, or should I walk on this one?

thanks,