No thats against the law . 

I know that comes with much red tape with the different zoning laws.

Murphy's Law applies like a mother to REI.First, if you are doing all the project picking/analyzing/Comp Analysis and you don't know the market, and you don't know the formulas, and your numbers are wrong? 

Of course, with all things, the answers to all these matters will depend on the circumstances.California tends to have more laws on the books and requirements and restrictions that it can be a good idea to form a CA LLC for out of state property so that you as a CA resident are covered, and to try to have your contracts fall under the purview of CA courts.

I'm not worried about the 80% that follow the law and the agreement. ;-) 

Follow the law only exactly in California.

@Maryann Fialdini, I hate to say it but you need a good real estate lawyer IN YOUR STATE because HOA laws vary somewhat from place to place.

Written by attorney investors, it's full of practical advice about the management of investment property, has sample forms that can be edited, and - most importantly - tells you what your primary state laws are and where you can read them.

I would guess that a 3% max annual raise is more realistic because the socialists are tightening their grip on California and pushing for harsh laws to take control of properties etc. 

I got my start renovating my own rentals and helping my Electrician Father in Law on odd jobs.