5. In order to avoid a financial sinkhole, get a copy of the current HOA’s financial statement. Note whether there’s a fund set aside for repairs and replacements. Also, walk through the development and note the overall condition as well as what needs replacement in the near future. Will the fund take care of the repairs or will HOA fees likely go up? Finally, find out when the last fee increase happened and why.

6. Get copies of the minutes from the last ten meetings. If meetings are not held regularly or no one takes minutes, find out why, because this is a red flag. If meeting minutes are available, look at what problems were discussed and whether they were resolved or allowed to continue.

7. Make sure the HOA is not involved in any lawsuits from past or present owners. You don’t want to pay dues for past problems.

8. Talk to a least three residents of the community. Ask them how they like living there, what they don’t like about the community, and whether they would buy there again. Listen carefully and you will find out all you want to know about what’s going on.

9. Look closely at the community demographics. If you have kids and most of the residents are retired, you’re likely better off looking for a development with owners of a similar age. Take some time to carefully look around to make sure you’ll fit in and be happy with your neighbors.

10. If you don’t have an opportunity to do the above homework before you make an offer, make it subject to your approval of the development’s bylaws and financial statement. Then, if you find something you don’t like, you can cancel the deal and get your deposit back.