State or local laws may be more or less restrictive.  

It didn't occur to me that my lender would have restrictions. 

I'm starting out with Rental Properties and, just my luck, California is trying to pass a Bill that will, from my understanding, put restrictions on how much a landlord can charge for Rent for their rental units because of the current ridiculous cost of living here.

If the association is well run and negotiates good deals, you could potentially pay less in maintenance overall because they're painting and replacing roofs with a bulk discount that you don't get with a SFH.The two things to watch out for are high HOA fees where the numbers don't make sense, and rental restrictions. 

Minuses are HOA fees that never go down, HOA restrictions as far as renting, large assessments when the HOA decides that a major repair needs to be done.

It is the Convenants, Conditions and Restrictions (CCR's or Condo Bylaws) that govern what happens to any unpaid HOA liens or unpaid dues that have accumulated prior to a foreclosure or if the property is surrendered back to the Lender by any other means. 

I have been looking through the CCIOA and other Colorado legal documents to see if this restriction is allowed in Colorado. 

The country sets the rules but each individual state can fine tune and further restrict those laws. 

If you are looking at getting into condo associations, there might be restrictions around financing as well, but that would be at the discretion of each association.  

Beginning on October 29, 2018, Freddie Mac is removing this restriction from their guidelines.