Reserve Study: (Financial health of Association) Reserves are the life’s blood of the homeowners association. Without reserves, the Association will ask you, at some point in your ownership, to come up with a special assessment to replace or repair a major component.
Special Assessments: (Extra fees imposed on homeowners for upkeep and repairs) Read the minutes of the homeowners association for at least one year to determine if there were any special assessments. Also contact the Property Manager and determine if there are any anticipated for the future.
Any restrictions on rental activities? Although rare, you must also read the Associations Rules and Regulations to determine if there are any restrictions or additional monthly charges for renting out your unit.
Owner/Renter occupancy level? “Condo Cert” is a form submitted to the HOA so that the lender will know “what” is happening with the HOA.
What is the makeup of the community?
Is it an ethnic neighborhood?
Do you speak the language and have an opportunity to rent your unit easier than most?
Is it a restricted neighborhood? (Ex: Senior Community)
How much are the local rents?
This is extremely important to your success and you must determine the accuracy of this number through various sources.
Local newspaper rental ads.
Real Estate Agent (MLS Listings)
Drive by the complex and call on for Rent Signs.
Online rental sites.
What is the most you’ll pay for the property or MAO (Maximum Allowable Offer)?
What is the least you’ll pay for the property?
What is the minimum/maximum number of bedrooms?
You’re Criteria. Work it!
Keep in mind, however, that sometimes a 2 bedroom home could become a 3 bedroom or a 1 bath house could become a 2 bath; so keep your criteria a little liberal.
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