I got a lien on the house they were flipping, all looked good on paper, then I found out they were using my $60K to improve their personal house!

New roof, siding, soffit, fascia, flooring upstair, repair fencing, yard work/landscaping, new flooring upstairs, new vanities, kitchen remodel, new paint job What was the outcome?

However, profits would be bigger if there were no HOA fee and there would be more opportunity to make improvements on the property.

Something to consider is that you mentioned you had a day job so I’m assuming you’re not a real estate professional.

Consider emerging Sunbelt markets like Phoenix, Tampa, or parts of North Carolina (like Raleigh or Charlotte) that continue to see high migration and job growth, driving both appreciation and rental demand.

We wanted to improve this building and make for a long-term hold that improves the community.

In other words, the cap rate becomes fairly meaningless upon transfer.Your job is to assess whether or not you can make a good profit after buying the asset at whatever the sale price is. 

Make sure you have one to keep improving onTwo things I noted:1.  

I wouldn’t invest too much in old technology right before demand creates improvements. 

Efficient Renovations: Focused on high-impact upgrades like modernizing the kitchen and bathrooms, improving curb appeal, and installing energy-efficient features, which are highly desirable in this competitive market.Optimizing Layout: Evaluated the property's layout to ensure it met modern buyer preferences, such as creating open-concept spaces.