Help making a decision on a low reserve fund coop
We recently found a great apartment that checks all of our boxes (except location, but we can't have it all). We found financing despite the below issues, but we're still unsure about it.... There are a total of 126 units in the building, out of which 61 are sponsor-owned and 65 Owner occupied. The board consists of 3 members, one of which is the sponsor.
The reserve fund is only $125K. There are talks of a future assessment, but nothing has been decided. The building is old, but there are not significant repairs needed, but of course, that could change. Basically, we're wondering if its truly a bad deal to buy into this coop or the low reserve fund is normal/not a super red flag. Our lawyer told us that it just means we might need to pay an assessment in the near future, but there's no way to tell how much. Our broker (who is not the listing agent) told us that for the price, it wouldn't matter if we end up paying an assessment down the line because we're getting a deal (it's a deal because of the sponsor v. owner situation). Basically, that if we found another apartment with the same features, we'd be paying what we would pay if we had to pay an assessment. Of course, an assessment is temporary.
He also mentioned that for such a large building, an assessment would mean paying up to 1K extra a month. Not ideal, of course, but doable. Basically, my question is, is our broker giving us good advice? Is it worth the risk for the right apartment?
Posted Apr 10, 2026, 12:57 AM UTC