About to pull the trigger.. .but still nervous about this deal

[Amine E.]

Hello fellow BP'ers

I m looking at 7 condos in a 24 unit condos community spread over three buildings. The condos are in good share and in great area. I would consider them B+. The current owner have them all leased long term with very low vacancy over the last 10 yrs. He has been the President of the HOA and its been pretty much him and the management company for the last 10 yrs since no one else is interested in the HOA ( He said). Rents are $675-$750 per unit and Market rent can support up to $825 per unit in this area. HOA fees are $250 per unit and pays for insurance, outside buildings maintenance (including roof), Gas and Water. My offer is closer to 190K at this time. Is there a reason I should be Nervous, AM I missing something here?

Thank you

[Ben Rasche]

Also might not be a bad idea to ask the current owner to bump rents. If you're sure they should be raised then let him be the bad guy and let him deal with the potential turnover. I've always been cautious about saying units should be rented for more than what the current tenant is paying. If that is the case then I always wonder why the current owner isn't already getting all he/she can.