This is specific to this market, each county will have its own rules and regulations.

In your position I think YOU should check zoning regulations and see if its even allowed.Did this conversation happen before or after the lease was signed:Tenant casually asked me if I did not mind if she took care of some of her friends kids to make some extra money.

@Gautam Venkatesan It depends on what regulation is being followed by the portals, 506(b) or 506(c).

haha, exactly Jeremy, its technically illegal to do a million things in the U.S. but its usually when the government cant benefit from it, they deem it illegal.

HUD offers the home to government agencies, not investors for $1.

That would warrant an *** chewin if so.First off, get a copy of the CC&Rs and Rules & Regulations.

Also know as an acceleration clause.A little history lesson…In the old days when banks loaned money and took back a 30-year mortgage that's exactly what you got.It didn’t matter if you sold the property to someone else that loan stuck with the property for 30 years and could be taken over and paid by anyone.Well, in the early 70's banks, lenders, state governments and other interested parties were so upset that they were getting stuck with low interest rates, missing out on taxes, assumption and other sale fees, that lenders started adding due on sale acceleration clause to their contracts.As you can imagine, a lot of borrowers thought this was unfair and brought suit against banks and lenders.Unfortunately around 1979 the United States Supreme Court found in favor of the banks, and today the due on sale -acceleration clause (usually paragraph 17) is found in most if not all conventional mortgages.For years now buyers and sellers have been trying various ways to get around the problem.

That's right Andy, he's worried that VA might not guarantee the loan for that specific property because it's non conforming to zoning regulations in that area.

Michael clearly knows this stuff and I encourage you to listen to him.Here's how I look at rules and regulations, generally.

Sometimes they have links to government owned properties.