Question About Condo Finances (Budget,Reserves,Expenses,etc.)
Just received the financials on the condo complex where I am hoping to buy a unit, and what I received was fairly simple but not sure what to make of it. The "Profit & Loss Budget Overview" for 2014 states that the Operating and Reserve Funds (Income) is around $367K, and the expenses are $413K, for net of negative (-) $46K. Is that good? I assume that there are lots of expenses to paid in a year and that for a property of around 150 units that is normal. Then there are the "Reserves for Capital Expenditures" that is $82.5K. To me 82 thousand seemed low for a property that large. Then there was the last "special assessment", the third in the 30 year history of the place. The first two were for $500, but this last one in 2012 was for $2,000, payable over 36 months. So an additional 55 dollars a year for three years.