Looking for info on Condo Package Deal

[Kevin Danikowski]

I can't find forums on bigger pockets discussing condo package deals, so any insight possible would be appreciated! 

I'm looking at a deal to buy around 10 condos (in chicagoland all 1x1 / 2x1) where I would own majority stake in the Association and thus would have power over it. The cap rate is high (7-9) but it has been on market for nearly a year. 

I'm not sure why it's still available since it seems like a great deal, here is what I guess:

1. There are additional headaches when it comes to owning multiple condos and running the association.

2. It's not as "sexy" to own a bunch of condos compared to a 10+ unit building.

3. Financing is probably difficult since I'll need to go though a local bank and finance around 10 separate units (hopefully 20% down).

4. You can't sell them off as easily to owner-occupied since the entire building is non-owner-occupied

Can anyone give any insights on condo package deals with/without having majority stake in an association? 

Also, I'd like to eventually do a condo deconversion, thus having it as one multi unit building, any insights on condo deconversions ? 

[Andrew Syrios]

I would talk to banks ahead of time to gauge their interest. You would also need to be concerned about liquidity. It's hard to sell 10 condos at a time and you can't list them separately or you'll flood the market and probably have to lower the price on each. And of course there's the dreaded HOA fee, which often eats away your profits.

I would also check to make sure the HOA is in good financial shape and the building doesn't need any major CAPEX right now. Otherwise you're likely to get a special assessment fee in the near future. On 10 condos, that could be quite a bit.