BiggerPockets

What are you going to do with the property? Are you talking about acquiring the property from the seller via contract for deed vs. lease option? I don't think a lease option would work because it involves having a lease, and that violates the HOA's no renters rule. Is this even worth considering? HOA's are nothing but pain.

Hi, if your intent is just to flip it, an option should be sufficient, but consider your market and the effects of any seasoning requirement for any potential retail buyers. For several reasons, a lease option should be accomplished from two agreements and as Jon pointed out, you'd have the HOA to deal with upon discovery. If the property is free of encumbarnces, why not use a note and deed of trust, that's a better deal and safer for you. You'll be in title for future sales if the property does not move as planned. You need to check title anyway and such deals are inexpensive to close. My third choice would be a CFD and you'd have closing costs later on. The HOA dues could be assumed and excepted at settlement with seller financing and a special warranty deed, otherwise with the option or CFD, such can be assumed and paid when you sell it. Check with your settlement agent on how they want to see it. Whatever works. Bill