All Forum Posts by: Kevin Cenna

Thanks Michael!  Do you have any experience with multi-family properties?  I have some experience with condos and would prefer to stay away from that again! :)

Hello.  

I'm somewhat new to RE, working my normal job and discovered BP.  I've been binging on the podcasts (40 in the past 2 weeks!) as well as other RE podcasts.  Great content to listen to, now I need to build a team and roll up my sleeves to learn the nuances of the financial part of RE.

I'd like to learn more about multi-family properties as buy & hold units near campus, as well as MHP's.  I want to build a portfolio that generates cash flow as well as using them as my retirement "fund".
I'm not interested in building SFH portfolio and don't have the time for SFH flips.

Hoping to learn as much as possible before jumping into the deep end!

Cheers!

Kevin

Having previously owned a high-rise condo unit, here are some things I wish I would have asked before buying:
1. what are the HOA rules? The seller should provide a copy so you can see what the restrictions are before you buy.

2. What are the monthly maintenance fees for each unit?

3. Are there currently any major projects in the building that you will be responsible for?  

4. Are there any major project coming in the next 3-5 years that you need to be aware of? If there is a major project, you may be responsible for a large outlay to help fund the project. You should be able to request the past X months of HOA meeting minutes to see if they've discussed any of these major projects.

5. Are the pipes and electrical up to code?  A family member bought a condo and the pipes needed to be replaced because the plastic originally used was prone to breaking.  The condo building got a payout to help fund the re-piping, but the prior owner just pocketed the cash.  So check to see what you need to be aware of for items in the walls.

6. Are there restrictions on replacing the windows or balcony railings, etc.? A friend wasn't allowed to replace the original crummy windows in their condo b/c the HOA had to approve them and simply wouldn't.

7. What is the owner-occupancy rate in the building?  My condo was 40% investors, so only 1 local bank would lend to me.  Made re-selling impossible.  (Note - make sure you know your exit strategy.)  Bank should also be able to tell you this info.

8. Is the condo in a high-rise?  What floor is it on?  Are the units near the elevator or garbage shute - things that another owner (or renter) would find bothersome.  If it's too close to the ground the traffic may be bothersome or it could be really convenient.

9. If it's in a high-rise with a garage, do the units come deeded with a parking spot?  My building had a garage & 10% didn't have parking spots.

10. If it's near water, are there problems with flooding, soil erosion, insects, etc.? 

11. Does the building have on-site management? If so, how long has the current manager been there? If they are constantly churning management, it's (possibly) an indication the HOA is pretty tough to deal with.

There may be other things to consider that I'm not thinking of, but those are just off the top of my head from ~10 years of condo experience.
Good luck!

Kevin