Seeking for help on doing due dilligence while purchasing a single condo unit.

[JamelleAlexander]

Hello all

,
I am currently in the process of possibly purchasing a 1 bedroom condo unit for an investment property and I am seeking advice on doing my due dilligence. I know that purchasing a condo is and can be very different from purchasing a conventional single family home. With the condo association reserve funds and the whole structural and mechanical condition of the building, how does one do proper background checks and homework when making such a purchase. I know it is important hiring an inspector for a property inspection, but how feasible is it when purchasing a single condo unit. Can the inspector give me an assessment of the overall condition and health of the building? As well as when determining how good the condo association is, is this even possible to find out?

If any members have any experience or info with condos, I would greatly appreciate your help! Thank you!

Jamelle Alexander

Edmonton

 

[Thomas Beyer]

Ask fro a copy of the reserve fund study AND the most recent engineering report !

A home inspector will help too .. especially if you ask him to inspect common area elements like boiler, roof too

 

[JamelleAlexander]

QUOTE (ThomasBeyer @ May 2 2010, 10:40 PM) Ask fro a copy of the reserve fund study AND the most recent engineering report !

A home inspector will help too .. especially if you ask him to inspect common area elements like boiler, roof too

Thanks alot Thomas. Your help is greatly appreciated. I always look through the threads and notice you post frequently and assist with great insight. That`s awesome.

 

[bizaro86]

QUOTE (ThomasBeyer @ May 2 2010, 10:40 PM) Ask for a copy of the reserve fund study AND the most recent engineering report !

You`ll also want a copy of the most recent audited financials, and the budget for last year, as well as the recent board meeting minutes. I always get the minutes, because that`s the first place that would mention an upcoming special assessment. The financials are important, because they give you an idea of whether the building is collecting enough fees to pay the bills, and whether it has an operating deficit to be made up in the future from owners.

If you don`t feel you can confidently interperet these documents, you can hire someone to go over them for you and point out any problems or issues. Your realtor should be able to refer you to someone who offers this service if you feel you require it.

Michael