Hello BP. I was looking at some pre- foreclosures and found a condo that I know only allows owner occupancy. I was wondering, out of curiosity, if one could do a subject to (assuming the numbers work) and do a rent-to-own on something like this. Has anyone dealt with a situation like this and has the HOA had an issue with it? Or is there another way of doing a deal like this?
Considering that you haven't already purchased the property, I wouldn't force a property to rent if it shouldnt rent. But, If you're determined to rent it maybe Air BnB would work.
most HOAs in my limited experience (i sorta despise hoa's, sorry!) want to see at least a rent to own purchase commitment with seller financing.
cuz most rent to own agreements tend to look like a lease which only offers the OPTION to buy =/
Contract for deed / land contract / installment sales - any of those actually creates an "owner" as well as occupant; used to be that one of those arrangements would be used and structured so that the occupant never completely fulfills, so in the end the deed stays with the grantor / previous owner. SAFE Act and CFPB might frown upon those sorts of arrangements these days. And the HOAs are on to these sorts of ideas too.
Lease option / rent to own - the occupant is renting, so the HOA would be allowed to deny such occupancy. And the HOA doesn't need to be especially bright to see those as a rental - because they are so given that a lease is involved.
- Investors make it work but not buying condos with rental restrictions. It isn't worth getting stuck with a property you can't sell and cant rent. Though IMO I would never buy any condo ever
If no renting is permitted in the condo bylaws/docs, I wouldnt even mess with it.
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