Large # of purchasers are investors

Yes. This could cause problems with lenders. People who claim a unit as a primary residence in order to qualify for a lower rate but intend to rent it out instead are committing mortgage fraud. Do you really want to spend several hundred thousand dollars or more to share ownership in a building with a bunch of fraudsters? Just asking.

thanks evnyc. I have suspicions, but no proof based on a small percentage of posts on the SE board for the building. I don't want to accuse anyone without proof and most of the people on the board seem honest and helpful. I also don't want to avoid a building I like because of baseless suspicions. I have no problem with people purchasing as an investment or pied-a-terre if they are honest about it. I am also fine with someone who rents out their unit after living there for a few years because they outgrow the apartment or move. I hope that answers your question.

Yes, a condo building that has a large number of apartments owned as either a pied-a-terre or as rental income by an investor is a big concern for me as well as for both quality of life reasons (living next door or below an empty apartment or renters) and for lending difficulties.

With large buildings, you can find a fair amount of apartments listed for rent. However, it is possible that the owners would prefer to sell but haven't been able to find a buyer at this time.

If you don't personally know people who live in a particular building and/or your broker doesn't have specific knowledge of that building, it can be difficult to ascertain if apartments are owned as a primary residence, a pied-a-terre or as an investment vehicle for rental income.

As silly as this sounds, when I'm going to see an apartment I like to arrive 15-30 minutes early and sit in the lobby and see who comes and goes from the building. Does it look like a family-friendly building or is there very little foot traffic? Sometimes I can have a conversation with someone else who is in the lobby who lives in the building and find out a little about the building. I'm not recommending this approach, but it's helped me in a limited way.

Lobster:

I agree strongly with your point. But I would hand near the doorman to overhear
conversations as well.

Also if there are a large number of condo rentals in a building, you won't have the leverage you would have in well managed rental building. It is difficult to complain to several individual apts as opposed to a concerned building management.

"Also if there are a large number of condo rentals in a building, you won't have the leverage you would have in well managed rental building."

And still, nowhere near the leverage you would have in a well-managed CO-OP.

thank you for the helpful responses. will try some of them soon!