Condo Investment and dealing with Condo Assoc.

8 Replies

My wife and I are currently looking at Condos for investment hold properties. The Condo Association allows for the purchasing of Condos for rent at a 15% capacity. With that being the cap. we were discouraged to even attempt purchase for rent. What kinds of difficulties will we face if we purchase and rent the property despite this obstacle?

I'm sure they'll make an exception for you. Did you explain your REI plan to them? Once they understand all you're trying to do is place a successive number of renters in the building, like a tenement building they will welcome you with open arms.

@Michael Perry Meet the HOA manager in person. Chances are they rather have you an investor owning it than it sitting vacant...

Frank

Originally posted by @Frank R.:

@Michael Perry Meet the HOA manager in person. Chances are they rather have you an investor owning it than it sitting vacant...

Frank

Sure, why not? HOA's will just arbitrarily allow you to exempt yourself from any bylaws. Or maybe they'll get all the owners to hold a special election to change any bylaws/CCR's/house rules to accommodate you. Sure another owner could come along and sue them...and you.

What is the rental capacity now? Why are you interested in this particular deal? Condos can be tough because a lax enforcement of the rules can suddenly become draconian or a property without rental restrictions can suddenly get them voted in and then you CAN'T rent it out anymore. That has happened quite a bit in atlanta but mostly intown locations like buckhead and around roswell road sandy springs. I've rented my condo units and never told the HOA a thing...and I've never had an issue because we have excellent renters and its always shared housing. Most condo's I have done are on the busline so I have rented to tenants without cars and it's helped keep everyone happy.

@Bob Bowling - am I missing something but why the hostility?

@Andy Luick  That's @Bob Bowling  persona.  It can be entertaining or really annoying.  However, he often has a point buried in there somewhere.

@Michael Perry Probably not a good idea for the reasons above, plus condo values are volatile and as Bob said, you're at the mercy of the HOA. HOA's can be ruinous.

Originally posted by @Andy Luick :

I've rented my condo units and never told the HOA a thing

@Bob Bowling - am I missing something but why the hostility?

I have a problem with people that come into an association with the intent to break the rules that are probably the reason the property is desirable. And then when they get smacked they complain how HOA's are a bunch of Nazis. Those are the hostile people.

HOAs are a law unto themselves and it gets personal very quickly with them. I'd rather take my chances in a warzone before I'd ever get involved with them again, either high or low end. Just my personal opinion (sic).

I personally can't stand Condos!  Simply too much uncertainity for my taste.  I agree with @David T.  , I'd take warzones all day over condos and their fees... 

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