Buying condo units from sellers in distress

[Nick Dodds Sinclair]

So I've got a strategy idea and I'd like to see what holes can be poked in it.

I want to buy condo units for less than market value by buying them from distressed owners and then renting it back to those same owners so they can continue living in their home and can avoid the challenge of finding something else to buy, or finding a comfortable place to rent.

I'm in Ontario (Canada) and in my province Condo boards (HOAs) can unilaterally decide charge additional fees to fulfill the Condos obligations. Usually this happens when the building urgently needs a major repair and I've seen single charges as high as $30,000. This happens repeatedly. Many owners are retired and on a fixed income and can't afford the charges, so they're forced to sell.

I want to help them stay in their home, while forcing equity for myself.

Of course there will be due diligence on the building to make sure the rent can cover what the actual costs will be, including future assessments (being a manager, I do this for my clients) and make sure the owner / tenant can actually afford that rent.

What am I missing? How is this not the brilliant idea I think it is?

[Chris Seveney]

@Nick Dodds Sinclair

If they cannot afford their mortgage now what is going to make you think they can afford the rent which if less than mortgage how do you make money and if more than the mortgage how will that work.