All Forum Posts by: Mike McDermott

Better than asking here, you and your parents should separately engage real estate attorneys to structure this arrangement since it goes far beyond a simple case of parents helping the kids with a down payment, and it is simplistic to suggest that this arrangement is just that. As far as splitting the monthly fees, I would question sharing part or all of the HOA fees since some HOA fees are for services that are not necessarily related to maintenance, repair, and replacement. Gardening, security, housekeeping, snow removal, etc come to mind. These services are of value to the occupants but of little tangible value to investors.

Hi Jake,

Eight units is small which might be a concern if there are large deferred projects or delinquent owners or both. A single delinquency can cause large hardships on the remaining owners, and if there is a large deferred project, such as roof replacement, that expense has to be divided between the small ownership. However, despite professional management or not, the Board is responsible for the budget, and it is my experience that most Boards try to run things tight (they pay assessments and don't like assessments any more than any one else), so I wouldn't go in with the expectation that I could change the world. Overall there isn't sufficient data to answer your question, but be cautious with a small community where a single upset could really rain on your parade.

Did you purchase "loss assessment coverage" with your condo insurance? That coverage may handle this type of assessment.