New investor looking into Condos.

[Elijah Williamson]

As a new investor who also doesn't know much about condominiums, I'm looking for some advice on this deal. There are 8 units available out of a total of 100. All foreclosures. Most of them are in pretty decent shape, needing some paint (I'm a painter by trade) and some flooring. The worst one needs new doors, a deep clean as it smells horrible, and paint/patching. Six units are 2 bedroom, 1 bath and two are 3 bedroom, 1 bath. Condo fees include the roofs, windows, exterior siding, and snow/lawn care. Landlord is responsible for everything inside (appliances, cabinets, walls, flooring, toilets, furnace, hot water heater, etc.) They're in the lower income part of town but it's not saying much as it's a smaller town with low crime rate. The only PM I'm looking to work with typically charges 10%. I'm hoping she'll go lower if I get these but I want to know if they're even worth it.

Asking price is $46,000 a unit. As they're foreclosures, the bank wants them gone quickly. Would it be wise of me to ask $30,000-$35,000 for each unit if I got all eight? I don't think the numbers work at $46,000 but maybe I'm missing something? 

2 bedroom, 1 bath units rent for $795 a month, condo fees are $245 a month.

3 bedroom, 1 bath units rent for $950 a month, condo fees are $295 a month.

I'm in Alberta, Canada if that helps any.

[Owen Langis]

Check to see the financials on the building to see if there are any major issues with the building that will need to be fixed.

This could be a massive expense x8 units and could easily sink you.

Not uncommon to see that a building is mismanaged and has zero cash to fix the problems.