Purchase prices cannot exceed $600,000.00 and renovation cost cannot exceed $100,000.00.2) Every investor will be assigned to a specific geographic area that no one else “can farm in”.3)The company was looking for “motivated and hungry” investors in my area to open new markets. 4) My questions that went unanswered or not satisfactorily answered to clear my doubts:      a.)

Market OverviewThe Los Angeles apartment market is comprised of 864,197 units in thirty-seven geographic concentrations ranging in size from the 62,684 unit Hollywood/Silver Lake submarket to the Tujunga/La Crescenta/Montrose submarket, which amounts to 5,448 units.

Note I have every intention of doing exactly what I told them I would do and I suspect every tenant has believed I would do as I say because their interactions with me would not lead them to another determination.This explanation combined with good screening and some good luck has so far resulted in no need to evict anyone in 50 years.  

Those issues can affect any HOA in any geographical market, at any time.Good luck!

This is how it is supposed to be handled but some lenders have overlays or loan officers are not aware of the actual guide lines or rules depending on their organization or who they are selling the loan to in the correspondence channel.I have come accross this several times you simply make the underwriter aware and in some cases the agents and appraiser are informed as well in case there is a need for an outside LOE letter of explanation. 

@Brent Coombs Thanks for the explanation.

Going in will really help you get a much clearer explanation of what is going on and what is needed to remedy. 

My recommendation would be to plan to achieve a diversified portfolio across sponsors, geographical areas and asset classes. 

You are comparing to large geographic areas. 

The reasoning, as I remember, was some combination of 1031 exchange, increasing ROE, and leverage.Does anyone have a good resource or explanation summarizing the logic?