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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: condo flip Posted by JK (the other JK) on April 12, 2009 at 12:22 AM In Reply to: Re: condo flip posted by gc on April 11, 2009 at 9:01 PM : You are right. It is 90 days. What happens if HOA goes bankrupt? Have u ever seen this happen? What effect does that have on the neigborhod? : GC : : : Is there a down side to flipping condos? I think I heard Bruce Norris say that it is not a good idea since lots of buyers will purchase using FHA, and FHA requires seller to be owner for at least 6 months. Is this correct, or am I missing something? : : I thought it was 90 days. The biggest downside is that condos can go down in value faster than houses. Therefore you need to get a bigger discount on your buy. Other potential pitfalls to be prepared for are unknown assessments, HOA bankruptcies and low owner occupied #s (less than 50% owner occupied will kick out FHA financing). They typically restructure. Yes I've seen it happen. It affects the available financing (i.e no FHA or 10% down conventional financing). Less available financing lowers the property values. Lower property values attract more all cash investor types who rent the properties out. I'm assuming you can connect the dots from here. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : You are right. It is 90 days. What happens if HOA goes bankrupt? Have u ever seen this happen? What effect does that have on the neigborhod? : : GC : : : : Is there a down side to flipping condos? I think I heard Bruce Norris say that it is not a good idea since lots of buyers will purchase using FHA, and FHA requires seller to be owner for at least 6 months. Is this correct, or am I missing something? : : : I thought it was 90 days. The biggest downside is that condos can go down in value faster than houses. Therefore you need to get a bigger discount on your buy. Other potential pitfalls to be prepared for are unknown assessments, HOA bankruptcies and low owner occupied #s (less than 50% owner occupied will kick out FHA financing). : They typically restructure. Yes I've seen it happen. It affects the available financing (i.e no FHA or 10% down conventional financing). Less available financing lowers the property values. Lower property values attract more all cash investor types who rent the properties out. I'm assuming you can connect the dots from here. [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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