Newsflash: Buying into a condo that needs some work?

I have an opportunity to buy a condo in Seattle in a pretty desirable area (West Seattle). There are a lot of positives about the property – the location is beautiful and very safe – it is a waterfront property with large windows across, on the edge of the puget sound. The building itself is small, with only 4 units. There are 3 owners, one of whom owns two units. There’s no rental cap, which means flexibility when renting.​However, the unit needs some work. It was built in 1947 – so the exterior definitely will need to be redone at some point in the future. It needs a new railing for the balcony (the estimated cost of which is about ~5k), and needs new windows (one is cracked and one has a broken seal).​The HOA also has low reserves ($5k), and requires that I put down 3k into the reserves upon buying. They just reinstalled a new fire alarm system.​The kicker here is that I might be able to get it for much lower than list price. The current list is at $425k but my agent is confident that we could get it in the mid-to-low $300s.​I don’t mind putting some work into the building – and owning waterfront property in Seattle seems like a good long term bet. It’s also a gorgeous place I would love to live inside.​Thoughts?



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