Bank Owned Condo Suggestions?

[Taylor C]

Hi,

There's a condo for sale that I might be able to get for a good price. Here are the specs:

* 3 bed/2.5 bath condo
* 2 story, 1200 sf
* Now asking $68,000 (from a recent $89,000)
* Taxes: $1072
* Insurance: $600
* Tax value: 136,600
* Condo assoc. fees... a whopping $240/mo (typically I've seen fees in 140-170/mo range. this is high. includes cable, common area maintenance, community pool, ext. building maintenance, master insurance, pest control, sewer, tax comm area, trash removal, and water)
* Another sold last July for $126,000
* A similar unit is listed at $124,000 and has been on the market about 165 days
* Close to a university
* Rents start at $675/mo. Probably could get $800 after repairs

I figure the property needs $20,000 worth of work (it's a reno in progress - Needs new floors because they are bare to the poured concrete in kitchen and bath areas and to subfloor in other living areas, some manageable plumbing etc.)

Was thinking of offering $48000-ish. The place needs a lot of work and the HOA fee is high, which combined will continue to discourage other buyers. When ready to live in, it could make a decent rental, or flip.

I would appreciate any tips and suggestions you have that would me with this deal.

Thanks!

[Eddie Ziv]

In general, condos make terrible investments for buy-n-hold and here is why: Unlike SFRs, when it comes to rent, you are in great disadvantage against the big apartments rental machines. They have the cash, the advertising, and the incentives they can offer. As an owner of a single unit, you don't have it. Aside from that, some HOA would not allow you to rent a condo. You didn't mentioned (Or I missed it...) where this unit is located, but in Florida for instance, there are condos building that are almost empty and the burden of maintaining the common grounds is carried by few.