Couldn’t agree more with this:
It’s wild how many people just skim the summary and call it a day. I’ve seen “healthy” reserve funds that were basically just IOUs to themselves. Taking the time to dig in now really does save you from nasty surprises later. It might feel like overkill, but your future self will thank you.if the numbers don’t add up, you’re setting yourself up for headaches down the road.
I learned this the hard way with my first rental property. The HOA’s “reserve fund” looked fine on paper, but when I actually dug into their statements, half of it was earmarked for repairs that were already overdue. Ended up with a surprise special assessment six months in. Now I always ask for detailed breakdowns and past meeting notes. It’s a pain upfront, but way better than scrambling later.
Now I always ask for detailed breakdowns and past meeting notes. It’s a pain upfront, but way better than scrambling later.
Couldn’t agree more. People underestimate how sneaky those “healthy” reserve funds can be. I’ve seen HOAs with six figures on the books, but then you realize half of it’s already spoken for with deferred maintenance or lawsuits you’d never know about unless you dig. The docs are a slog, yeah, but missing something can kill your cash flow or worse. I’d rather lose a deal than get stuck footing the bill for someone else’s neglect.
Totally get where you’re coming from. I learned the hard way that “healthy reserves” can be a mirage. When I bought my first condo, I saw a fat reserve fund and thought, cool, less to worry about. Didn’t dig much deeper—rookie mistake. Six months in, we got hit with a special assessment for roof repairs that had been kicked down the road for years. Turns out, most of that reserve was already earmarked for stuff like elevator upgrades and legal fees from a dispute with a contractor. Nobody spelled that out in the summary docs.
Here’s what I do now, step by step:
1. Ask for the last 2-3 years of HOA meeting minutes. Not just the annual report—those monthly or quarterly notes are where you see the real talk about upcoming projects, complaints, and surprise expenses.
2. Get a copy of the reserve study (if they have one). It should show what big-ticket repairs are coming up and whether there’s enough money set aside.
3. Look for any mention of lawsuits or insurance claims. Even if they say “settled,” it can mean higher premiums or more assessments down the line.
4. Check if there’s a history of special assessments. If it’s happened before, it’ll probably happen again.
5. Don’t just look at the numbers—ask questions about what’s actually been done recently. If they replaced the roof last year, great. If not, and it’s 25 years old...well, you know what’s coming.
It’s a pain, yeah, but after getting burned once, I’d rather spend a few hours upfront than get stuck with a surprise bill later. Sometimes I feel like I’m being paranoid, but honestly, it’s just self-preservation at this point.
Funny thing is, some sellers or agents act like you’re being difficult when you ask for all this stuff. But if they push back too hard, that’s usually a red flag for me. Better to walk away than end up paying for someone else’s shortcuts or neglect.
Anyway, just my two cents from getting singed once before.
Honestly, you nailed it with this:
I tell folks all the time—if someone gets cagey about paperwork or details, that’s your cue to slow down. People underestimate how much “hidden history” can be buried in those meeting minutes and reserve studies. It’s not paranoia, it’s just smart. I’ve seen buyers regret skipping the homework way more than I’ve seen anyone overprepare.Funny thing is, some sellers or agents act like you’re being difficult when you ask for all this stuff. But if they push back too hard, that’s usually a red flag for me.
