Buying a condo/townhome no organized hoa

I am looking at buying a townhome ( new built). Its only 5 townhomes and they are considered condos. Reviewing the disclosures, because this is a new built, there is no hoa set up, no financials or reserves. What they disclosed was : condo fees will be $200/month and cover outside maintenance, insurance, snow removal, etc. with 5 units they will get $1k/month and they are budgeting cost will be $11.8k/month. So basically the hoa will barely cover the cost of expenses. Im really interested in this property but this scares me. Also builder is saying the 5 owners will get together once the 5 units are sold and decide on how to run the hoa . Anyone’s been part of a small community like this? Pros, cons? Is this usual?

Annual Budget Report
Fiscal Year: 2025–2026

Use of Funds – Operating Expenses
Category – Annual Allocation
• Utilities (Water, Sewer, Garbage, Street Lighting) – $4,000
• Yard Care (Mowing, Fertilization, Weeding, General Maintenance) – $1,200
• Snow Removal (Including Ice Melt for Sidewalks) – $800
• Insurance Premium (Property and Liability Coverage) – $5,460
• Pest Control Services (Quarterly Treatments) – $360
• State Business Entity Renewal – $10
• Bank Account Maintenance (Checking Fees) – $40

Total Operating Expenses: $11,870

Sources of Funds
• Monthly HOA Dues ($200 per Unit × 5 Units × 12 Months) – $12,000

Total Projected Income: $12,000

Budget Notes:
The proposed annual budget ensures adequate coverage for all necessary operational expenses while maintaining a modest surplus of $130/month to account for unforeseen or incidental costs that will be considered reserves. The HOA does have an HOA transfer fee of 0.5% but it does not apply to the initial purchase of the new construction.