All Forum Posts by: Sergey A. Petrov

I suppose another way of looking at it is yes you can. Just make sure the rent you charge is enough to cover HOA fines which may run a few hundred bucks per day per room, the legal fees you'll incur yourself plus the HOA legal fees because you will lose that in court, and be prepared for all your neighbors loving you as a neighbor.

@Bruce Woodruff underlined the applicable language in his reply above

not as a boarding house or other arrangement for the rental of individual rooms.

 So long as it is in the actual CC&R's, as originally posted, the Board has no authority to rule / make a decision to the contrary. That would require a vote of all owners and an amendment to the CC&R's. 

Yes you can so long as your wife’s brokerage is ok with it and provides the escrow company with a letter to that effect. Otherwise, generally speaking, that commission is not your wife’s. It belongs to the brokerage who then disburses it to the agent based on whatever agreement exists between the firm and the broker/agent (your wife in this case).

What @Bruce Woodruff said. Do your due diligence and vet your association *before* you get too far down the rabbit hole

 @Chris Seveney thanks! Although I wouldn't be the developer, or the builder, or the declarant. There would be no developer to HOA transition, there would be no developer warranty, none of that. It is an existing association. Yes, I would do the budget, establish new bank accounts, enact assessments as per the existing governing docs, probably do a reserve study, make sure it is incorporated, catch up IRS tax returns, get new insurance. I would be doing all this as a member of that association (having elected myself to the board until a few units sell and new board members are added). I may or may not prefund the reserves - lots and lots of condos with severely underfunded reserves or even non existent reserves in smaller associations where owners just prefer to pay out of pocket when the roof needs to be replaced (they essentially levy a special assessment onto themselves). Since my only role in all of this would be as a member of the association and its elected board of directors (again not a developer, declarant, etc) I would be covered by that association D&O policy (which I’ll purchase on day 1) and my liability will be limited by those same existing governing documents which limit board members’ personal liability…I’ve played this out in my head so many times (and consulted developers from before ground breaking through transition and consulted HOAs on the other side and took them through litigation against developers ) . Maybe it is time to actually look for one and do it. Nobody blew any serious holes in my thinking yet :)

@Kyle Tu - step 1 would be to see if the seller is willing to extend before you start jumping to expensive short term financing. Explain what happened, get prequalified elsewhere, let the seller call the lender (who may or may not be willing to tell the seller anything), and see if you can get an extension. If not and the investment still pencils with additional financing expenses then go for it. As many mentioned you can always refi into something else later

Starting a business and a side hustle aren’t the same thing. Licensing (real estate and general business), insurance, contracts, systems, processes, employees, marketing, etc. Unless the startup is a “i am just going to try doing it out of the back of my pickup truck and see how it goes”, once you work out your business plan you’ll quickly see how fast your start up capital will get into tens of thousands of dollars and countless hours of your time. Depending on where you want to end up with the business you might not be able to juggle a full time job…

just my two cents having started several businesses from scratch.

@Andre Houston check out this thread for some local lenders you can try reaching out to!

https://www.biggerpockets.com/...

Then I suppose a follow up notice might be warranted depending on the wording of the original notice. The follow up could say "as is per the prior notice, you have not responded nor executed the previously offered lease extension therefore the existing lease terminates Aug 31 and your tenancy ends on the same date. Please contact me to schedule a move-out inspection prior to that date otherwise we'll assume you have fully vacated and will perform the full inspection on September 1. Keys, etc. should be sent to.... or you are welcome to leave them on the kitchen counter. Any and all items remaining on the property as of September 1 will be deemed abandoned. We will be following up with the reconciliation of your security deposit within X days as required"