Step 1 is to check the rules of the HOA - you may specifically be prohibited from renting out the condo. 

What happens if the owner occupants just get tired of having renters nearby and enact HOA rules to prohibit rentals. 

You would need a loan that is non-recourse, you can't invest in it personally, and there are a lot of prohibited transactions you could trip. 

@Derek Dombeck you are certainly correct that not all loans prohibit an option. 

I ask because many HOAs in Arizona (mine included), prohibit short-term rentals such as Airbnb and they are fining owners BIG TIME for violations.If you need help in AZ, feel free to reach out to me.

As I mentioned, the condo association docs don't prohibit it, but they still may try to block it and get lawyers involved.

Prohibiting booking through other platforms seem too obnoxious even by Expedia's lowered standard.

Buy and hold is generally safer in the Solo 401(k), or possibly fixing up a property, renting it for a time, and then selling it so it's not "flipping," per se.And of course you always have to watch out for the prohibited transactions and make sure you keep good records for your accounts and work with a banker who knows what they're doing.

My mortgage at the time had a clause that prohibited me from collecting more than 2 or 3 months rent up front.

Pros:Strong cash flowMajor affordable housing shortage in the countryBarrier to entry - zoning prohibits new parksPride of ownership - the residents own the homeLower operating costs - the residents own the homeLower touch - the residents own the homeSticky residents - costly to move a homeEasy to raise rents - costly to move a homeRecession resistant asset class - affordable rentLarge private equity funds are entering the space - drive prices upMom & pop ownership - opportunities to improve NOI and valueLower entry cost per door - less capital neededCons:Not sexy - smaller resale pool (but that's changing)Stigma - some counties try to stop operations (poorly operated parks, criminal activity)Stigma - some people don't want to live in oneLower credit quality residentLess appreciation potential, unless forcedNiche investment - helps to have scale to properly operateMany banks don't understand it - tougher to financeOlder assets in many cases