I thought I was getting a deal, then I did a deep dive into the HOA financials

I've been looking for condos, they fit my budget (including HOA dues), plus a lot around here are built more like townhouses than high rises and have attached garages.

Anyway, one neighborhood in particular has higher than average HOA dues (like 2-300/mo more than comps) which depresses values. I don't personally care because I don't plan on moving for 10+ years anyway. My agent having spoke with another agent listing a different unit in the neighborhood has been in talks with the incoming HOA president. Supposedly the dues were set to drop in line with other neighborhoods by the end of the year.

An estate sale unit sat on the market for 30+ days, priced 50k below comparable (other neighborhoods) units. I offered 10k below list + 10k in seller credits to cover HOA dues for a while.

Seller accepted within a few hours, because again, they want to be done with it.

Looking deeper at the financials once they were shared with me painted an entirely different picture. My "deal" quickly evaporated into inheriting a seriously financially troubled HOA. If the HOA dropped dues to comparable neighborhoods, they would only just cover operating expenses and put nothing into reserves. Their most recent assessment study showed within 10 years they need nearly 6 million in repairs (waterproofing/siding, roofs, windows, balconies, plumbing, etc.) This is based on those things all hitting end of useful life. That currently have less than 2m cash in reserves. So uhhh where would that 4m come from? Oh yeah, special assessments. Nothing better than a surprise 35k bill one random day in February. The dues at the current rate still fall short of their estimated repairs over the next decade, so that assessment is coming no mater what, be it a one time assessment or another increase in dues (more likely). And I'm pretty sure that home owners insurance doesn't cover assessments related to deferred maintenance.

Thank god I have an HOA review contingency to get out of this and only be out the basic inspection fee.

Anyway, the point of this is to hopefully save someone else a headache. Always always always review the HOA financials while you still have time. And if you have no idea, toss the documents through your preferred AI agent (use two or three, they all have different mind sets) and see what they say. ChatGPT was like "eh it might be ok but it's risky" Gemini was like "bro, run don't walk."