Condo developments can fall into a vicious cycle when a high % are rented out and lenders refuse to make loans on the units. This erodes prices and makes for a situation where only investors and absentee landlords buy, further worsening the environment as few owner-occupiers remain to keep up the place, serve on the HOA board, enforce rules, etc. The downward spiral cannot be arrested because none of the participants have the power to interrupt the process. I’d stay far away from this purchase if I were you. Urbanrealtor and sdr may have input to add, as this is their arena.
