I am looking to buy a one bedroom vacation/summer co-op in the Hamptons which is one of my favorite summer destinations. I don’t want to rent it out since I plan to use it quite a bit, but I would technically only be allowed to do so for 4 weeks during the summer. I hear a lot of negative things about co-ops. Why are co-ops a bad idea? I can buy a home there but I don’t want to deal with the upkeep.

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A coop is basically a permanent rental. You’re buying the right to be a tenant, of sorts. You usually have oddly large HOA/assessment fees or whatever the coop calls them.

I actually didn’t know Hamptons had these… it’s usually old cities like Chicago with multi family giant buildings

Look at the tax implications of co-op and how it will affect your ability to make deductions.

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