Brainstorming for Condo, Part I

A real estate investor who was relatively "new" asked me to help brainstorm the following scenario:

Q: I found a lead on a condo that I would like to live in as my primary residence. How can I structure the deal? The condo is free and clear, the monthly maintenance fee is about $190/month, the Seller needs some cash (they want to start investing in real estate too), but is willing to owner finance a part of my purchase. The after repaired value of the unit is about $120,000 and it needs updating of the kitchen and interior painting. I have good credit and can put down up to 20% ($24,000), but would rather not… Any ideas?

A: Congratulations on taking the first steps toward buying this unit. There are several ways you can approach structuring this transaction. With the condo being free and clear, you and the Seller have quite a bit of flexibility to find an equitable solution.

I. First, order of business is due diligence or “doing your homework”. I would further evaluate and define your “exit strategy”. You stated that this would be your primary residence – for how long? What are your plans for the unit when you leave? What circumstances would make you leave? These factors help shape your purchase offer.

II. Secondly, I would evaluate the condo complex – are there any ongoing or upcoming assessments that will increase your monthly maintenance fee? Is there any current or pending litigation against the condo association? Are there any specific restrictions outlined in the Condo Association Bylaw documents that would be a concern?

Any ideas from YOU the reader? 48 hours from now, I'll post 3 ways this investor can choose to proceed. Until then, I'd like you to brainstorm and post your ideas in comments. There are no "wrong" answers, just different viewpoints.

Thank you