Thank you, very helpful information, have been routinely excluding properties with HOAs in my deal search just because the major cash flow hit, but will incorporate this advice and maybe start looking at some properties with HOAs as long as numbers work out and HOA governance/regulations are favorable

California is a tough state to be a landlord due to the laws that heavily favor tenants.

You’ve got other things working in your favor on this .

@John Thedford, I thought that went without saying.For everyone else, if you've read the numerous posts where we've discussed this issue, neither John nor I am in favor of deception. 

Are there any local credit unions that you've worked with that give favorable interest rates for renovation loans on investment properties?

The numbers absolutely favor owner occupied, as do interest rates and taxes in some locations.The part you are missing is not everyone can buy a house or wants to buy a house. 

You are able to get Fannie Mae or Freddie Mac loans which are very favorable and allow for better returns than apartments under $1 million. 

The fact that you could have sod tax free but turned in into a rental instead and now face taxes should work in your favor in the argument of intent. 

Also, the laws are a lot more in favor of the property owner than in residential since you don't have to worry about evicting someone from the place they actually live.

I'll do a "cross qualification" as a favor to a Realtor or other referral partner, but I'm not game if there's any pressure involved.