Buying 60%+ of an Condo Complex

[Michael P.]

I hope some people can lend some advice on this. A very interesting deal has presented itself. I am still studying it but I am very excited and want some opinions.

I have the opportunity to purchase just over 60% of the units in a condo complex. This seems very appealing to me since I am trying to branch off into multi-family properties.

I know the price seems very appealing. About 20k a door is the asking price. I believe I can get it down below that number. On average on MLS the condos sell for about 30k depending on the size. Since this one person owned so many they really didn't come available too often.

My goal would be to slowly buy out the remaining owners and then convert to an apartment complex. It would require probably another 900k or so to buy everyone else out. Who knows when they would want to sell though. In the mean time you would have to just rent all the units out.

Here are my main questions:

1. Would I control the HOA? Meaning since I have over 60% do I pretty much have the power to decide what the HOA does?

2. Just a crazy hypothetical question. Say the HOA has a reserve of 500k in cash. Can I say hey that 500k is going to be distributed to all owners. Since I own 60% I would get 300k in cash. Is this possible?

3. Can I convert this building into an apartment complex down the road when I own all 100% of the units? Is this a viable exit strategy?