House Hack Question With HOA

[Julian Sirkin]

Hello,
I have a single family house under contract to owner occupy house hack. The MLS listing said, "No rental restrictions", and the house has clearly been an airbnb. There are exit signs posted on the walls, and fire extinguishers on the wall. Dope! Seems perfect.

I got the terms for the HOA, and there is a term on leases saying you cannot rent your lot for less than 6 months, and that "no lot or residence may be leased for hotel or transient purposes"....which of course sounds like it is direct contrast with the "NO RENTAL RESTRICTIONS", which I made my offer predicated on.

Also looking at the financials it seems like these terms were set in 2004 and haven't been updated since, because the date on the signed doc is from them, and the HOA has collected a couple late penalties, but no other penalties besides that.

My realtor seems unconcerned, but for obvious reasons I am. Thanks in advance.

[Kevin Sobilo]

@Julian Sirkin, its absolutely not a problem UNTIL IT IS A PROBLEM!!! 

The HOA is probably currently being run by people not concerned with enforcing ordinances strictly, BUT that could change anytime. Once you get a "Karen" on the board you could be out of business. Your agent is unconcerned because they have long since been paid by then.

So, that is your risk. You might be fine for a long time, or 2 years from now you get shut down suddenly.