Unwarrantable condos in Naples Florida

[Sandra Cressey]

Under what circumstances is purchasing an unwarrantable condo (one that does not qualify for conventional financing) a good investment? 

I have an opportunity to buy a nice condo in a good area (central/north Naples), for about $25K under FMV. It will be an investment property for which I believe I can get the same rent as for another similar condo. The HOA, however, has all the issues why a lender will not lend on this community (more than 50% investment properties, one owner owns 40% of the units and reserves are only 6.5%). And I know I'll have a hard time selling later since it will require a cash buyer or portfolio/private loans. Any thoughts? What would be an appropriate discount to compensate for these issues? And would you still buy? Thanks!