When identifying properties, you should speak with an attorney regarding occupancy limits for that particular property, as well as to determine if there are restrictions imposed by an HOA, etc.

Single family homes are kind of pricey at this moment and when we do calculations on condos or town homes the HOA usually causes it to cash flow negatively.

The hoa fees are higher than the ones on the house.

Do you have unusual expenses for that property such as very high taxes, HOA, etc?

Is there ever a time HOAs are okay/friendly to renters and if so, how do I find that out?

If you were to add in 1250 in expenses (vacancy, prop management, maint, cap ex, hoa, util, etc), then you would actually not cashflow.

This is why I hate condos and HOA's.

Items like interest paid, property taxes, insurance, property management, HOA fees, etc etc. 

Is there an HOA or some sort of covenant on the property?

So you have to have a property that comps to the ARV you want, and where 75% of the rents MORE than covers the expenses on the property (PITI & HOA)... otherwise known as the DSCR.