You want to add value and reduce expenses.Also, it is wise to have a healthy liquid reserve available when buying commercial real estate.I would call commercial real estate brokers and find one with a teacher's heart.

I just checked and it has reservations through the summer already and I'm sure its occupancy rate is close to 90%. 

Monthly expenses will include mortgage payments, property taxes, insurance, utilities (if applicable), maintenance, and reserves for repairs.You’ll need at least 3.5% for an FHA loan or 20% for a conventional loan, plus cash reserves.

The buyer would need to show solid financials also of course (good credit, experience operating rentals, proof of funds for down payment and adequate reserves to cover any unexpected cap ex).

Their most significant risk is an injury lawsuit that will either be dismissed or settled out of court by their insurance provider for well below the liability limits.If a mom-and-pop investor obeys the law and treats their tenants honestly, they'll never have to worry about asset protection beyond ordinary insurance and a small reserve. 

The renovation costs may include a contingency reserve and renovation-related costs.Contingency Reserves:Contingency reserves 10 % required for any unforeseen cost overruns that may occur during construction.Unused contingency reserves that were financed into the loan will be applied to the principal balance of the loan.

Either way, ensure you have reserves and run the numbers carefully to set yourself up for long-term success.Good luck!

I believe that the Federal Reserve is going to cut rates by 25-50 bps at it's September meeting (no emergency cut), but that 30-year fixed rate mortgage rates will rise to upper 6s low 7s around the same time, and Commercial borrowing rates, including for multifamily, will increase as well. 

The HOA doesn't have the 10% minimum in their reserves account (savings account) and Freddie Mac won't lend on it. 

This isn’t just about bookkeeping—it’s about setting yourself up for sustainable growth.Many investors use a basic system with at least five accounts: one for income, one for operating expenses, one for taxes, one for marketing, and one for reserves.