Owner financed condo with high HOA

[William Sumnicht]

I know condos are a hot topic around here. With the knowledge that there may be varying thoughts, I'd be interested to get a few opinions on a property I've got my eye on.

Positives: Low price, owner finance possibility, HOA includes gas, HVAC maintenance and replacement, water, trash, exterior maintenance, snow removal.

Negatives: High HOA.

Price: $50,000

Improvements: $0

INCOME

Rent: $900

EXPENSES

HOA: $323 (whoa!)

Vacancy (10%): $90

Property management (10%): $85

Maintenance (2.5%?): $23

PITI guestimate (with owner finance): $300

$900 - $323 - $43 - $85 - $23 = $426 left to cover PITI (expenses over 50%)

$426 - $300 PITI = $126 Cash flow

Does this really leave enough wiggle room? Particularly with high, unavoidable monthly holding costs of $623 (HOA dues and PITI). A lot of what ifs come to mind with that (what if the HOA decides to disallow rentals?)