Condo deal, not sure what to do

[Danny Day]

Had a friend call today and said her son got into an owner finance situation with a 2/2 condo here in town. Long story short he needs to get out from underneath it. He can't afford the taxes that are coming up this month and is willing to deed the property over to me.

She told me she has a tenant in the property now, which is paying the note for her as well as the monthly HOA fees, nothing more.

I can't decide what the best play is on this one. The numbers really are not working for me. I've never even looked at a condo before.

I asked her for details on the note, and she told me it was a 15 yr note for $30,000 with a rate of 11% (I believe).

His monthly note is $309 and the monthly HOA is $140. Annual taxes are $680.

The comparable condos are selling around $38,000. This one would need a light rehab - carpet and sheetrock repair, and some paint.

I've ran the numbers and it isn't looking like there is any money to be made on this deal what so ever, from a landlord point of view.

The $140 monthly HOA fee seems very high to me. Why would someone pay $140 per month in HOA on a $38k condo. That makes no sense to me.

Pretty much he wants to deed the property to me, and I pay the taxes and assume his note. He would like to get some money out of the deal if possible.

Rental comps are $650-750 a month. Why his mother has it rented for $440 per month is beyond me. She is losing money and has called me for help.

Could someone please chime in

Thanks

Danny