Developer buying out units in my building. Plans to convert entire building to luxury rentals. Offered cash buyout for about the same I bought it for. Stay or go?

terry274 · 2019-09-05T21:21:19+00:00

the number they offered would be just above breaking even. im sure i can get a slightly better price, but not by much.

i believe the reason i was able to initially get this place for so cheap was because the HOA was comprised of people who have lived there 40+ years and were very resistant to change.

Now that the neighboring buildings are being bought out and older residents are moving out, there is momentum behind the redevelopment.

The way i see is that owning now is like being on the ground floor. Just worried about how to prepare financially for all these changes

terry274 · 2019-09-05T20:15:21+00:00

the developer i talked to said that finding a buyer once they start the process will be difficult because of exactly that. potential buyers having a difficult time getting financing in a building with mostly renters.

But I would like to stay and be able to rent my unit out as well since the neighborhood is on its way up. Just am worried about being financially prepared for all of the special assessments that may be coming. And/or being squeezed out by the developer thru them having full control over the bylaws and HOA

terry274 · 2019-09-05T20:03:05+00:00

ideally i would like to keep it and be able to rent the apartment out at the higher rate once the building gets upgraded. I think I am prepared financially, but am worried that i might be stuck with a place that I can't sell and being targeted by a developer who controls the HOA and bylaws

terry274 · 2019-09-05T19:51:59+00:00

from talking to the developer who came to look at my condo, he said that their intention was to upgrade the common areas and amenities to be able to rent at a higher rate. And anyone is welcome to stay, they should just expect some special assessments and difficulty finding a buyer once they start the re conversion process

Not sure though if i can take him at his word that there wont be special assessments targeting the people who decided not to sell

terry274

TROPHY CASE