I’m considering buying into a 10-year-old condo community—townhome-style units in a mid-size HOA—with some financial flags I could use help interpreting.
The property looks good on the surface, but:
• Roof replacements are happening this summer for 3 buildings, even though there’s no reported leakage.
• All units are getting attic vent replacements and minor roof work to stop ongoing patch repairs.
• The HOA (38% reserve funding) dipped into their monthly operating funds last year to cover emergency roof repairs—about $15K—rather than using reserves.
• Right now, monthly dues are $430, but only $150 of that goes into reserves. The reserve study recommends contributing closer to $350/month/unit, meaning there’s a sizable gap. I’m pretty sure HOA won’t agree to it.
• If they don’t increase funding, future special assessments could run $15K–$22K per unit, especially as full roof replacements are scheduled for 2040. That does not seem too drastic right now…
• Management is changing this August, and the board is also reviewing landscaping contracts—so there’s hope for cost optimization.
I know HOAs tend to hit big maintenance cycles around the 10–15 year mark, but this feels like it’s coming on fast.
Is this kind of reserve shortfall and early roof replacement normal for a 10-year-old property? Would you walk away, or negotiate hard and brace for future assessments? ( I was able to bring price down by 15k )
Overall, the unit I am looking at seems very clean and Inspection came through with some minor cosmetics issues, which caller got fixed.
Looking for perspectives from anyone who’s gone through this or dealt with underfunded HOAs. Thanks!
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source https://www.reddit.com/r/RealEstate/comments/1lxurvt/is_this_condo_purchase_financially_risky_reserve/
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