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Updated about 5 years ago on . Most recent reply
HOA Rental Freeze, Should I Still Buy?
My fiancee' and I are looking to invest in our first property. We would live in it for a few years then try to rent it out as we buy something larger that is family friendly. The condo is a great deal for the location (downtown Chicago, 13% below median price, 1 minute walk to work and CTA) and even includes a parking spot in the price. The only problem is that the HOA has a rental freeze because they have hit their rental cap of 30% and we would be put on a wait list. Do you still think it is worth buying? Could we ask the HOA how long they think the wait is or what # we would be on the wait list? Does anyone have a similar experience they could share?
It is also worth noting that the condo has not appreciated very-well. Sold for $355,000 in 2005 and now asking price is $365,000. Perhaps this is why the HOA is limiting the rentals.
Thank you for your time.
Most Popular Reply
Originally posted by @Ryan Hickman:
My fiancee' and I are looking to invest in our first property. We would live in it for a few years then try to rent it out as we buy something larger that is family friendly. The condo is a great deal for the location (downtown Chicago, 13% below median price, 1 minute walk to work and CTA) and even includes a parking spot in the price. The only problem is that the HOA has a rental freeze because they have hit their rental cap of 30% and we would be put on a wait list. Do you still think it is worth buying? Could we ask the HOA how long they think the wait is or what # we would be on the wait list? Does anyone have a similar experience they could share?
It is also worth noting that the condo has not appreciated very-well. Sold for $355,000 in 2005 and now asking price is $365,000. Perhaps this is why the HOA is limiting the rentals.
Thank you for your time.
I would not get my self in a situation where the HOA will dictate what you can do with your property. So what happens when you decide to move and want to rent the property if the HOA says no your stuck. Bad scenario.