HOA Rental Freeze, Should I Still Buy?

[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.