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Updated over 7 years ago on . Most recent reply
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HOA analysis- will it make or break this deal?
Looking at buying a townhome in a HOA community with a community building and private streets. I know both of those things can be expensive in addition to the roofs, lawn maintenance, etc.
In the minutes from the last HOA meeting I learned that they do have some substantial road repairs (estimate TBD), 2 units that failed inspection for a new roof, flashing that needs to be fixed around chimneys and an AC that needs to be replaced in the community building. There are probably another 6 adjoining units that need new roofs.
On hand they have $15,000 in cash, and 44 units paying $100 per month with monthly recurring expenses around $2,100.
Last thing, it looks like there may have been a group of residents that were disgruntled because the whole board resigned, and a new group took over.
Aside from the HOA, the property looks profitable. Does anyone have any insight as to HOA balance sheets and can tell me whether they think that they'll have enough cash on hand for these repairs this year?