Well the first thing I would say is check out the HOA as much as you can. This is not an easy task to do. The mandatory HOA/CCR Bylaw package that is delivered to buyers is a real chore to go through and finding out tangible information is not that easy. Try to get the contact information for members of the board, especially president and treasurer. What you want to make sure of is the level of the HOA reserve, and any assessments. Also with respect to the HOA reserve level check to see if it is compliant with state laws as to how much they need to have in the reserve.
The second big issue to tackle is default status with regards to other homeowners. If there is a high level of defaults in the complex, which is more and more common these days, then that means the HOA MAY (note the words MAY) have some serious issues with regards to funding levels.
Have your realtor go through the realist tax roll on the MLS to see how many foreclosures there are in the complex. Perhaps even see if they can dig up how many other units have active notices of default in them.
Also make sure you have a good idea of the owner occupancy rate as this may affect the financing. Check to make sure that a unit can be purchased using FHA financing as well. Same is true for the other GSEs. If not for you then for possible resale on down the line.
My advice is do your due diligence and then some. It may be a good deal for you but do yoru homework.
