co-ops with VERY high flip taxes

bugelrex, is that an HDFC coop, or an ex-limited-equity coop (like Morningside Gardens)? They sometimes have mechanisms to keep out profiteers/flippers, and to create a more deep-rooted sense of community.

Does the 7% of flip tax come off for each year lived there, all the way down to zero flip tax? [Not that I'd plan for that time horizon, but I'm just curious]

alan,

just a regular coop, I never asked if the flip tax could come down to zero, I'd guess it won't since they still need the money for reserves. Ever come across any other coops with such a high flip tax?

is this 15% of the sale price or 15% of the profit from the sale?

That high flip tax is only painful if you plan a short-term stay. Otherwise, it makes a lot of sense by discouraging high turnover, which is a good thing for the co-op. If you're planning to hold long-term and can reduce the percentage on a yearly basis, why would this policy be of concern?

15% of profit of sale. Just wanted to check if this raises any red flags that are worth investigating..

I wouldn't buy there because resale would be extremely hard, unless you want to die there of course.

Those percent-of-profit deals can be messy, as it can be tough to determine the seller's basis.

We started out with $-per-share, then after much wrangling went to percent of sale price. 2%, I think.

You have to add 15% to the cost of any renovation you do (unless the building lets you deduct improvements when calculating profits, which opens a whole different con of worms). I agree with NWT: I don't like percent of profit flip taxes. Then again, I'm not big on flip taxes to begin with.