All Forum Posts by: Ken Nyczaj

Going to see the property tomorrow and start digging into the financials. Will update anyone who is interested.

Thank you

@Ryan Scott Isacksen Great advice Ryan. I’ll be sending a letter to the 2 property owners next week to schedule a meeting. Luckily they do live nearby. Thank you

@Jon Johnson that is definitely a worse case scenario I, unlikely but you have to look at it from all angles. The more I look into this, the riskier it gets. I may just wait until after the new year until I invest in my first property, it will be easier to rent after the holidays. From what I’ve read on BP some of the hardest months to rent is from Nov 1 to Jan 1st. Thanks for the reply

@Sam Shueh $90 per month is reasonable unless the HOA hits the homeowners with a costly special assessment.

@Andrew Hemminger Hey Andrew, thank you for the information. The community is in Grasonville, MD on the Eastern Shore. 

1) It does look like deferred maintenance on exterior window shutters, siding and roofs. I know the HOA is behind on dues but have not dug deep enough yet to find out exactly where it stands.

2) Will look further into HOA bylaws. Didn't think about this, glad you responded.

3) Makes sense, special financing is all that is being accepted, no FHA/VA.

After your input and others, this is something that definitely needs more research into. Appreciate your help, happy holidays.

@Steve Racicot good advice. Thank you Steve. I’ll look further into this and see who sits on the board and write back to ask your advice, if you don’t mind? Appreciate it!

@Beth H. again Beth, thank you for your response. At a deep discount it may make the property viable. Considering how quickly these become rented at a monthly rate that is attractive to even a non heavily discounted asking price. Definitely going to do some homework to see who sits on the board and find the exact status of the association before I get too deep into this.

@Beth H. thank you for the response

This specific condo is not FHA/ VA approved but it is not in default. One reason that it is not approved for VA/FHA is because the balance of investment/rental properties to owner-occupied properties is over half.

Will look more into the special assessments history.

As far as rentals, from the comps I’ve seen these units stay on the market for a week and are then rented at a price that would bring it an impressive cash flow.

Hello everyone,

I joined the bigger pockets community a few weeks ago and already have gotten great responses and knowledge from members. I'm looking to invest in the state of Maryland - Annapolis, Baltimore to Kent Island.

Some of the first deals that hit my criteria have been condo's. The latest is a complicated scenario and I wanted to ask the advice if it's wise to buy and hold or not.

Just spoke with a lender that deals in that community- there's are a large number of foreclosures (around 2008) that put the previous homeowners in default with the HOA, about half the money has been recouped and half still outstanding. To make matters more interesting, two people own over half the of properties in this community and this has made prospective buyers hesitant. The $90 monthly HOA goes toward common area/yard maintenance and the communities master flood policy.

I'm aprehensive about the future of the community. Does anyone have a similar example to talk about or knowledge on what an educated next move would be? Are new homeowners/ existing homeowners liable for the debt the HOA is in? If the HOA defaults what happens to the community?

Thank you

@Stephanie P. Really appreciate the information on the meetups! That was one of the questions I was about to ask the local community. As of right now I'm set on a lender, but thank you for the information. Best of luck to you as well.

@Christi Hawkins @Doran Summers @Matthew Paul Thank you and I appreciate the advice!