Looking to buy an investment property? Terrific! You go out and search and find just the right property located in a great neighborhood of condos or townhomes. You check the MLS sheet and it says there are no rent restrictions. What does this mean
Some communities have covenants that provide for a limited number of units that can be rented in any given moment. I have seen anywhere from 5-25%. Once these limits have been reached, no more homes may be used as rentals.
I ran into this recently as I was looking for a home for my daughter to live in for the next 2 years of graduate school. The MLS said no restrictions. The agent lives in the community and was on the board for years. She told me that there were no restrictions in the neighborhood because they had never been approved.
Well, I did the next thing that all agents should do in this case, I called the HOA directly. They say that there are restrictions in place, but they have not been enforcing them. What? How does a potential investor know if they will be safe buying in this neighborhood? They don't.
A copy of the covenants are headed my way for further review, but this deal looks dead to me.
Comments(1)