Association does not allow renters

3 Replies

Greeting BP community,

I want to start by thanking you all for all the great information here. I am fairly new in the investment community. I have a young lady who needs to sell her property due to relocation. It's a town home 2/2.5. She said she was open to more ideas other than just selling on her own. The problem is the association does not allow renters, the owner must live in the property. 

She's selling for 170k

Assuming low equity what can possibily be done?

Assuming she has some equity in the property, then what can be done? 

I do not want the property for myself and I can't rent it out so what would be some other options?

Thank you in advance.

@Antonio Arias Assuming there is equity, you could wholesale the property to a retail buyer. Assuming there's equity and it's in a neighborhood with decent demand, you could just advertise the property on craigslist, the newspaper, facebook etc. and wait to get calls. 

If there's plenty of equity, you can even announce on the the property on the MLS through a realtor. Just keep in mind that selling costs (typically 6 % of sale price) will go to the realtor. You could just increase the sale price of the property by 6 %.

If you don't know what wholesaling is, here's a link:

http://www.biggerpockets.com/renewsblog/2006/11/25/wholesaling-real-estate-basics/

@Antonio Arias

 Another thing to keep in mind, before you do any further research on any condos, ask the seller if there's any rental cap on the building. Some associations will allow you to rent the condo. However, there is a rental cap ( renter to owner ratio limit). In my neighborhood, the rental cap is 20 % and investors/owners who desire to rent the condo need to wait until an investor sells his property. 

@Daniel Moctezuma  Thank you for the information. She just stated they do not allow rentals, but I'll have her ask if there is a rental cap. Perhaps she just doesn't know how to ask the question. I need to see how much she owes to see if wholesaling would even be an option. Thank you again Daniel. 

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