Don't do it. You will be responsible financially for owners who do not pay their dues. Also, condos have a 50% decrease in value in Providence.

The HOA is very important to research as well. You should ask:

-What the owner occupancy percent is within the complex? (Usually 75% is the minimum in my experience lender will accept)
-Is there any litigation against the complex?
-What the dollar amount is of the reserves?

These are all question your lender will ask for too. Also if you’re using FHA financing you should ask if they are FHA approved or else you will need a spot approval. Sometimes, HOA's will not release this information to buyers or buyer's agents but you can have the listing agent or sellers contact the HOA.

I recommend researching the management company that runs the HOA and their history with other complexes too.

Best regards,

Adam

Hi Bryan

I am a Buyers Agent and my first piece of advice would be to 1. check out condo docs (be sure that there is a C Certificate - clear from the association that will manage the condo)
2. Have a home inspection - you may think this not necessary - but, you need to protect your interest.

Hi Bryan,

I would be careful of a couple of things. #1, be sure whatever you do have an association and more importantly a Condo fee. A lot of lenders have backed out of lending to condos completely, but the ones that still are lending will not lend without a condo fee. #2, a lot of buyers I have worked with are very sketchy on the whole apartments converted into condos, not sure of the exact reasoning, but that has been my local experience.

Happy Hunting,
Chris

Hello Brain,

Some things to consider are noise issues. Condominiums and apartments are often built in different specifications due to their original intended use. Usually apartments have thinner walls, less insulation between walls, and smaller separations between floors. It depends on the extend of renovation the the builder has done and they should tell you exactly what they have changed in each unit and complex.

Best regards,

Adam

PS: Also check out the link to the article below