Are these red flags or just first time buyer jitters?

[Kevin Longeuay]

I'm looking at purchasing a condo from a turnkey company in Indianapolis and it looks good on paper but wanted to check with you folks.

Here are the numbers:

Price: $65k

Rent: $1075 (2bd 1.5 bath)

Expenses (PITI, PM, HOA): 697.83

10% Vacancy, 5% Repairs, 0% CapEx (turnkey comes fully reno'd): 161.25

Cashflow $215, ROI 16%

Looking at the MLS, the condo complex has a dozen other properties currently listed for sale and they've all been on the market for some time now. Most are around $58k but one of them has been on the MLS since May and the price has dropped from $57k to $51k. Doesn't seem to be anything wrong with that unit either, just seems like no one else is buying these condos but I don't know why. Should that be a deciding factor?

Thanks in advance!

[Jacqueline Coombs]

Definitely check into the health of the HOA. I bought a condo once without doing due diligence on the HOA and when it came time to sell, I could not sell it conventionally because the HOA was in the red financially. I finally was able to sell it to a cash buyer at a 10k loss. Lesson learned!