Investor Q: New Construction TH — Rental Cap + Pricing

[Vidit Maini]

Dear fellow RE enthusiasts,

I am considering a new-construction townhouse in a higher-crime area with slow-moving units — some units are still under construction. The HOA is currently builder-controlled and has a 6% rental cap; I want no rental restriction.

For investors who’ve dealt with similar situations:

• 1) Have you been able to negotiate changes to a rental cap while the builder still controls the HOA?

• 2) What concessions or price reductions are reasonable to ask for in this scenario? They briefly mentioned they have put units on clearance and will pay closing costs.

• 3) Any security or design features worth pushing for during negotiations?

Thanks in advance for any guidance. All Suggestions and ideas are Welcome!

Thanks,Vidit