u/earthless1990

I'm looking at buying a 2BR in a roughly 150-unit NYC co-op and just got the latest two years of financials. I'm not very familiar with co-op finances, so I'm trying to figure out whether any of this is concerning before I sign the contract.

Key points:

• 2025 revenue was $2.35M and operating expenses were $2.13M
• They had an extra operating assessment in both 2024 and 2025 to cover operating expenses
• Cash/reserves and Treasury investments went from $2.33M to $1.82M
• The building has a $13.5M interest-only mortgage at 3.2% due in 2032
• A facade project had an original bid of $2.77M, but about $3.7M had already been paid by the end of 2025. There's also an ongoing window project.
• The auditors noted that there isn't a study estimating future major repair/replacement costs
• Monthly maintenance is around $1,000

The $13.5M interest-only mortgage worries me most. When it comes due in 2032, they’ll have to refinance it, possibly at a higher rate. I’m wondering why they chose interest-only instead of paying down the principal.

The building also went through Chapter 11 in 2009, which makes me more concerned about the debt. Am I overthinking this, or would these financials make you hesitate before buying?

Thanks!