All Forum Posts by: Anthony Drew Gary

@Kyle J. Agree it's quite common.  Have a house in a community where they tried to pass this type of restriction but did not have quorum.

Thanks for letting me vent.  I'm of the opinion that you should be able to enjoy real property, even if your definition of enjoying it means making money on it.

Hi, BP

Wife and I are looking at a condo for a buy and hold scenario.  The homeowner's association language restricts rentals and reads:

No more than twelve percent {12%) or seven (7) of the Condominium Units may be leased or

rented to non-owner occupants at any given time. SEE AMENDENT TO CODE OF BY-LAWS OF

[Association name], Article XII/, Leasing of Dwelling Units and

Maximum Number of Dwelling Units Owned and THIRD AMENDMENT TO CODE OF BY-LAWS OF

[Association name]. As of the revised date of April 17, 2012 the Association is at the maximum of rentals allowed. Contact the Management Company for status updates on Rental Cap percentage.

Is language like this legally enforceable?  Has anyone dealt with this in the past and won?  If I reach out to the management company and am told the rental cap is already in effect, is there any real way for me to prove that?  If I bought the condo and rented it out anyway, is there any true legal recourse?

The property would cash flow well, so I'm hesitant to give up immediately.

Any thoughts?

Tags: HOA, law, illegal, rental restriction

@Eric Schultz if you find a 1% deal right now in the Eagle Creek area, it's probably going to require rehab.  I live in the area just on the Brownsburg side of Raceway Rd (county line road) and have a rental a few miles east in Pike Township.  Give me a shout if you want to talk more about the area!

@Account Closed is spot on. Anything built within the last 25 years is likely wrapped up in an HOA, so getting your hands on the CC&Rs should be your top priority. For example, many prohibit building sheds, which is an easy value add.

@Linda Dalton do you have to use one of of Roofstock's providers for property management services?  Can you self-manage?

@Ross Denman

"across the Brownsburg and Avon auctions."  Are these on line or at the Hendricks County Courthouse?

@Ross Denman you're finding $110k homes in Avon that will rent for $1,200/mo?

If so, I'll buy the next one from you. My research is showing $1,200 rents are on the market closer to $130k - $150k. Let's chat. I'll be ready to buy my next SFH in about 60 days (recent day job change, can't get a loan yet).

@Travis Sperr thanks for the lead!

Looking to be a connector of people:  Does anyone have any connections in the Denver / Boulder / Loveland, Colorado areas offering third party utility billing and payment services for remote landlords?  Approximately 200 units.

I agree with @Larry Fried on this one.  You can find houses in Indiana for $50,000 all over the place and many of them will rent for between 1-2%, but they aren't without their own problems.  I stay away from those.

You can get big returns in Indy, but they're in the lower income areas.  Those areas have their own challenges to offset the greater returns.  If you're looking at less than 1% deals, you can likely spend $100k and get $900 all the same...  I recently spent $98k on a rent ready house and rent for $1150 in Pike Township.