Fractured Apartment Communities

[Dan Handford]

I've be seeing quite a few fractured apartment communities being marketed lately and these have always turned me off due to their complexities and challenges. 

Fractured Community - an apartment/townhome community where you only own a fraction of the overall number of units in the complex. This is typically seen in a community where one of the former owners try to sell of each unit as a condo-style unit. These communities typically include an HOA.

Have you ever underwritten or acquired one of these types of communities? What are the pros/cons that you see?