Well what I mean about reading the balance sheet is figuring out how much is enough to have in reserve. The complex has 36 units but it appears their operating and reserve budget only has a total of $35K. It seems low and this was confirmed by a few others who knew a little bit more about this than I do. Than there are items on there like bad debt which is unclear what that means. I just wanted to know if there are any rough figures to how much cash should be on hand per unit or what numbers are important, etc.
Did you see what I posted about the reserve study?
It may be low due to recent large payouts for some reason. You absolutely should get ahold of a copy of it and look at it - it's much more important than a simple balance sheet.
Cash on hand per unit is a vague and meaningless thing without knowing much more (e.g. condo units with a shared roof might need more for roof replacement in 2 years versus a neighborhood HOA for SFRs that only needs to paint the streets every once in awhile versus one with a park, etc. etc.).
You first need more detail about the HOA itself and the expected expenses, etc. Get the reserve study, because that will tell you how much is enough in reserve, and it will help answer that first sentence you wrote in the last post.
