Comments on: News From My Realtor: HOA Condo Rules Won’t Allow Investors At This Time

By: Carey_PA

Carey_PA — Thu, 27 May 2010 13:45:02 +0000

Scott,

I feel your pain with that. HOA’s are a pain in the butt (mostly tho, I think if you live in a development with one.)

On the other side, depending on what kind of HOA it is like in townhomes and condos, etc. they sometimes will take care of the exterior of your home including, grass, snow, etc.

But if you live in a Single Family development like me and you have an HOA, then they can be beneficial in a way where the homes are kept well and don’t get trashy. Btw, I live in Amish Land in Southern Chester County, PA.

As an 11 yr. veteran in the residential real estate arena, I can honestly say that I never bought a condo. I dunno just something about the stinking monthly condo fees that turned me off. I started out investing in mobile homes tho, with lot fees tho…so go figure? lol

Now, as I mentioned in an email to you, I primarily focus on apartment building investing and my ATM biz.

Oh and I’m also a licensed real estate agent, so some HOA rules have caused some clients in the past to rethink their buying plans……………

Keep us posted about this or other condos you think of buying!

Carey

By: Maria (WriterGig)

Maria (WriterGig) — Mon, 08 Feb 2010 20:58:57 +0000

Scott, dropped by and noticed you haven’t posted in almost a year. Hope everything is okay?

By: Scott

Scott — Mon, 18 Jan 2010 19:58:35 +0000

Matt

I think you are 100% correct. Building a rapport with HOA is key. I wish I new some people on the board so I could attend a meeting and discuss how I would be a responsible owner.

By: Matt SF

Matt SF — Sat, 26 Dec 2009 14:24:26 +0000

I dealt with something similar a few years back on a townhouse, but I was attempting to rent it after living in it versus buying a new property as a cash flow investment.

At the time, the HOA only allowed ~15% of properties to be occupied by renters, but we were able to work around the issue fairly easily when I presented the renter’s personal information (no arrest record, steady job, had his kid on the weekend, etc.).

Something else you might want to try is dropping off the letter by hand to speak with the HOA manager. If you’re not local, give them a phone call to see if there is any way you can work around the issue. Since you’re in a time crunch, the willingness to build a personal rapport with the HOA staff might put you over the hump and make you a more attractive buyer in their eyes.

By: Dan

Dan — Tue, 11 Aug 2009 06:10:56 +0000

I live in a condo/townhouse development that currently does not allow the units to be rented out. We are considering changing the rules regarding this so that 1) owners may be able to rent out their unit instead of being forced to sell and 2) to attract potential buyers.

What are the potential issues associated with allowing rentals? Financing issues? Insurance? Legalitites? Anything else??

By: Maria @ Residual Income Web

Maria @ Residual Income Web — Fri, 01 May 2009 20:25:04 +0000

It’s not a condo, but we rent out a single-family home in a subdivision with a HOA. Luckily there are no restrictions.

I would not recommend buying it and hoping to get approved for renters — your ROI will suffer drastically if you go that route.

Another poster brought up an interesting point about looking into the legality of those stipulations.

By: jj-momscashblog

jj-momscashblog — Fri, 10 Apr 2009 21:51:37 +0000

Hey Scott, I had to come back to add one more thing that I’ve been thinking about. The HOA , Home Owners Ass. that concept to me is one that I can’t wrap my head around. I live in a very rural area, and can not imagine anyone telling me what I can and can’t do with my property. But the reality is soon it will come to that even for those of us who do live in the rural areas. That scares me. JJ

By: TGIF Round Up: Spring fever edition | Frugal Living Tips & Money Saving Ideas | Living Well on Less

Fri, 10 Apr 2009 18:17:29 +0000

[...] Passive Dad is negotiating with an HOA on a condo he hoped to turn into a rental property. Wish him [...]

By: Greener Pastures

Greener Pastures — Fri, 10 Apr 2009 00:21:37 +0000

There’s so many different rules right now, it’s hard to know what the heck to do. We have a 5.85% 30 Yr right now, not sure if we should refinance or not.

By: jj-momscashblog

jj-momscashblog — Sun, 05 Apr 2009 18:38:53 +0000

‘Great post Scott,
I have to tell you that I had just read an article regarding that “these times” while are scaring a lot of people and I do realize that there are also a lot of families who are in dire straits. Everywhere you read some experts are saying that this is the perfect time to invest your money in real estate,or even to start a new business.