co- op purchase
Thinking of buying a co op for a very reasonable price. Low maintenance $245 . Its an all cash purchase . The building has no mortgage,but it also has no reserve fund. I’m told its a very old co op (finish co op) It seems that the board is in a state of flux at…
Thinking of buying a co op for a very reasonable price. Low maintenance $245 . Its an all cash purchase . The building has no mortgage,but it also has no reserve fund. I’m told its a very old co op (finish co op) It seems that the board is in a state of flux at the moment, Just a treasurer dealing with the maintenance etc. Has anbody dealt with this kind of situation? Any wisdom would be welcome.
I assume this is one of the buildings in Sunset Park. You should poke around there are extensive discussions as to the pros and cons of those buildings.
Any apartment can work out if the price is right.
Yep,
No reserve means you’re right to be concerned, but it’s not necessarily a deal-breaker. If there’s no reserve all of a sudden and no one’s seen the treasurer for several months then it’s perhaps wise to avoid 😉
If it’s a well run, well maintained place and everyone has the pockets for assessments then it’s a money management issue and probably no biggie. Ask for a history of assessments, see if there’s any big projects pending and whether the building runs a surplus or deficit at current maintenance levels . . . and if it has a line of credit to cover short term expenditure gaps.
Depends on the situation. We have a small coop (12 units) which also has no mortgage and low maintenance. We have a reserve of only a couple of months maintenance. We collectively feel that we would each rather hold and invest our own funds rather than have them sit in a reserve fund. In the event of an emergency we assess as required. Comes down to how you feel about who should bear the cost of large repairs and capital improvements, should they be reserved for over time or borne by the current residents.
Why would you even considering buying in a co-op with no reserve? That’s very dangerous. What if the roof leaks or you need a new boiler or they want to replace all the windows? Huge assessment. Sounds very suspect to me.