It should end up in the same pile as the Rental Registration mess that the NC legislature overturned in 2019.

Learn how to calculate return on equity (ROE).

Matt,I know of at least 2 instances where these type of things have been overturned.

Per the HOA management company, the HOA, and the HOA's legal counsel, the rules are the rules, and they cannot be changed (even if the board/homeowners vote...it could be overturned).

Once SFH properties exceed $~130k or so FMV, the rent-to-value ratio starts to get out of whack, you no longer hit the 1% rule and one of two things happen:You don't actually cash flow once all expenses are accounted for.Your Return on Equity (ROE) is terrible.This is especially true in an area with high property taxes, like Texas.

Seems like the ROE is to simple for cash out refi because it doesn't take into account the loss of cash flow by increasing the payment. 

Using the standard ROE it comes to 7.2%.

So the ROE today on the retail purchases from 5 years ago is bad. 

My downleg was producing well over 20% ROI and just over 20% ROE.

Return on Equity (ROE) is also a better metric as it will usually get worse As you pay down the loan and eventually pay it off.