Buying a Co-op Unit (help)

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My wife and I are looking to finally buy something small in Tucson, AZ, now that we live here. Anything decent is $150,000 and up, but we just saw what we thought were condos for $35,000. They are nice and just the size we need, but they are actually co-op units. They tell us they cannot be financed, which may be okay, but then the monthly dues are $236 - very high compared to condos in the area. This used to cover the mortgage on the whole complex, but this was paid off last month.

The realtor we talked to seemed confused on the whole issue, and we aren't sure if the monthly dues will go down soon. Seems like a good investment, but I have no experience with co-ops. Any suggestions, or experience to relate?