Advice on A Deal with HOA

[Ursula B.]

Good morning BP:

I'm struggling with whether or not I should pull the trigger on a condo I have under contract. To me the numbers make sense, but there are a couple of things that concern me. 1) There's an active water leak from the upstairs unit (appears to be confined to the bathroom in the downstairs unit); 2) There is a piece of roof line exposed at the top of the building exposing rotten wood. The unit backs up to the woods and a golf course, so the roof line cannot be seen unless you're standing in the back, but it makes me wonder about the HOA (haven't received the HOA financials yet). As for the water leak, the HOA (who owns the downstairs unit) is selling as is and I don't expect them to fix it, but I won't be able to fix it without the cooperation of the upstairs owner/tenant. Would you go through with this purchase? Here are the numbers:

ARV: $35,000

Purchase $22,000 - $660(commission) = $21,340

Repairs - $7,000 conservative; $10,000 budget

Rent - $6,600 (conservative)

Taxes - $307

Insurance - $186

Vacancy - $132

HOA - $1,620

Maintenance - $600 (warranty + service calls)

PM - $660 (although I intend to manage myself)

Mortgage - paying cash, then refi with a HELOC - $1,224

Thank you in advance for your words of wisdom. -Ursula