Condo conversion risks
Many investors are jumping at the chance to purchase units in newly converted condo projects. The draw to these projects are often lower pricing than new construction and in some cases, positive cash flow from rental income.
The downside to these projects is older stock with a higher likelihood of problems than new construction. As these are new condo associations, there often has not been enough time to build up reserve accounts to deal with major issues. In these scenarios, it is important to understand whether the renovations were down to the shell and included the major infrastructure items or were the more customary paint, carpet, countertop and cabinet flavor.
Condo conversions can leave buyers with structural, legal surprises [Sun-Sentinel]