PUD's with HOA?

[Kathryn K.]

I was recently advised by an experienced wholesaler and mentor not to go after the Planned Developments because of the HOA issues. His take on it was that these developments (many of the ones in my area were built in 2005 and are in great condition)suffer the same problem as many condo developments-that with high rates of foreclosures in these developments their HOA's are suffering financially and therefore homeowners can probably look forward to assessments in the future so they aren't really a good fit for "buy and hold" investors. There seem to be some good deals in these developments so I was wondering if anyone had any insight regarding this. My sister owns a condo and was recently talking about how the HOA was in trouble and talking about raising fees and assessing for other routine stuff they can't afford to pay for anymore, so it would seem like a reasonable assumption to make regarding any development with HOA fees. Anyone wholesale PUD's? If so, what info do you look for when doing due diligence on the HOA?