If the building is in receivership, it means that it has severe enough problems for a Judge to warrant putting someone in place to supervise dealing with those issues, i.e. a Receiver. Chances are the building is in Housing Court, could be Chancery though. Either way you need to do your due diligence. Hire an attorney or inspector who handles these types of properties. Look up the Housing Court case and see what the issues are.
A $5K Condo is typically not habitable. Usually no water pipes, no furnace, bad conditions, bad porch etc. I can pretty much guarantee you WILL NOT be moving into this unit anytime soon. You would need approval from the Judge presiding over the case, allowing you to move into the property. This is highly unlikely to happen. The City may already have a RULO in place. (order not to rent, use, lease or occupy the property)
These units tend to come with substantial post purchase costs. Eventually the Receiver will have to be paid off, a porch may need to be built, or a new roof installed, etc. etc. All work will need full plans and permits. The Judge will typically order the receiver to perform essential or life safety repairs. 'Rehab type' repairs are sometimes done by the receiver, sometimes later by unit owners and/or a functional association. Either way, you aren't moving in and it isn't going to just cost $5K.
Depending on conditions and legal issues, the City may decide to go for a de-conversion order under the DCPA and turn the building back into a single rental property. It's not in receivership because of flaking paint. My recommendation is that you NOT believe anyone that tells you you can move into this unit or make money. Yes, it is possible but highly unlikely. I inspect these types of buildings regularly. These aren't for the faint of heart. As a first time home buyer you will essentially be throwing your life into 1-4 years of turmoil you can't even imagine.
Once again it is possible but highly unlikely you will do good on this. But then again, the fact that it is possible keeps the sharks making money off of first time buyers.
look to see if there's an HOA - if not, stay awaty
research HOA's financial's if they exist - if there are low or no reserves or no income is coming in, stay away
Does the building have violations or lawsuits against it? If yes, generally, stay away
How many of the unit owners aren't paying assessments? If more than 15%, - beware
I would advise that you engage a good real estate agent to do the research for you on properties that you may be interested in.
Baird & Warner
Is it a cash only buy? Whats the address? I probably would, since there probably isnt any reserves or any H.O.A.
Americorp Real Estate
Brokers Associate, e-PRO