It is possible to make money with them but the chances are not good (in Texas).I say this because investors took advantage of some large loopholes in the system a few years back and the state changed the rules (as they should have).If a HOA forecloses on someone, it is because they have not paid their HOA dues.

There are a lot of statutes and rules one must follow.

If you use the search function at the top of the page for 50% rule or 50% expenses, you will understand what I'm talking about.

Forget the 50% rule or other things when it come to the expense.

Post or hand out your rules and credit requirements at every showing, making it clear you are a no-nonsense landlord.

Don't the 50% and 2% rules contradict each other sometimes?

Over the years I have found that real estate investing communities are tight knit groups and word gets around quickly amongst investors and agents if someone operates in a less than above board manner (not that you would, I'm just saying).My general rule of thumb is that if someone gives me the lead then I go out of my way to make sure they get paid.

I once purchased a condo from a developer/converter who, because of 1031 Exchange rules, had to maintain ownership of at least 25% of the units in his 100 unit building for at least a year before selling.

Remember through the Fair Issac rule you have a 30 day window to allow Mortgage companies to pull your credit.

I have no idea of what the individual wants for the building, but I was wondering if the same rules apply when looking at a 1-4 unit building as compared to a 12 unit apt building.ie 50% and 2% rules.