Distressed Condos In Great Neighborhoods

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This probably should go in the starting out section.

I am starting to see distressed condos listed retail, in incredible neighborhoods, with good schools, that would rent at break even (paying retail) using the 50% rule. All the foreclosures in these complexes are causing a shortage of hoa dues, leading to the complex going down hill: Termite damage left unrepaired, giant potholes, wood damage, squatters. Obviously special assessments and increased hoa fees will be coming soon to the current and future homeowners.

I wouldn't offer retail of course, but my question is: would any one purchases these at 50 cent or less on the dollar (current retail), since we're talking about prime geography. Or focus on SFH instead? Since I am in California, the single family homes would have to be purchased in much less prime areas, that are not nearly as desirable, to cash flow.

I know many investors won't touch condos, and others love them.

Thoughts?

My primary is a condo, so I know some of the pitfalls.