I am trying to evaluate the financials of an HOA community and I was wondering if anyone has a rule of thumb for cash reserves or any other items that could be a red flag to investors?

You'll need to hire outside vendors for these items.

@Dawn Anastasi From what I hear, some people use the property losses as as a way to avoid paying taxes but if it were me I would simply take the income from the profits and donate like others.

I then came in to correct all those items.

I heard od a guy that bought similar land cheap , he was paid to reforest it , he then was paid when he put it in the states conservation easement , then he donated the land to a charity and took a huge write off . and everyone thought he was an idiot for buying the land

I tend to believe that off-street parking appeals to tenants slightly higher up the economic ladder, but for many I don't think it is a big item on their priority lists.I personally would only do off-street parking.

Otherwise, I will foreclose, get the property and re-sell or rent the property.Knowing what you know now...given that you have the experience, what due diligence items do you need to have for you to feel comfortable buying these NPNs?

If you break out each item its really, really easy to say "that's too much, I'll trim that" and then you're down to 30% of rents.Even brand new roofs and furnaces need replacement someday.

Remove those 2 items and R&M is $5202.However, I question why seller would sell the year after incurring such an expense?

The buyer closes on his HUD-1, sale price is 27K with costs of assignment as a separate line item of 10K.