Buying units in a condo complex

[Jon Klaus]

I am looking into the pros and cons of buying a number of units in a complex of about 200 units. I would only buy units if I could get them for <$30K, and average rent would be @$700/mo each. There is a HOA fee of about $200/mo that includes all exterior maintenance, garbage P/U, water, and property insurance. They should cash flow fine. My questions are about buying into a complex that has a HOA and fees. Drawbacks other than the cost? Advantages? This seems like a scalable way to get into an “apartment complex†with a decent CAP rate. If things went well, I'd like to buy 25 of them over the next couple of years.

I’d pay cash as I went and then ideally do cash out mortgages in groups of 2-4 units. Maybe finance 70-80% LTV. Any issues with doing this type of financing? Other considerations?