I have seen others questioning the legality of this restriction ( I can't remember where), but no one that seems competent enough to know what they are talking about...

Current lease has restrictions that prevents subleasing without LL's written consent.As for who to sublease, he's thinking of his military friends who would stay for a short term (3 - 6 months) after which he's planning to replace them with others.I see a lot of posts here in BP where the current tenant wants to move out or terminate lease early in which case transferring or finding a replacement tenant makes sense.

You close on the property, rehab it to get the value up, and once you have 30% of equity into the property, you can refinance out of the FHA loan (getting rid of the monthly mortgage insurance and owner occupancy restrictions), take out a HELOC, RINSE and Repeat with more rental properties.

Hi @German Aguilar, I agree with @Frank Wong and @Chris Mason but will also include the following benefits of a HELOC:Lower interest ratesNo restrictions on use of fundsFlexibilityNo usage feesSave on closing costsAlso, if you haven't already, checkout this article regarding HELOCs, here's a link to it: How to Use a HELOC to Buy Real Estate

Not only will you be paying PMI at a slightly higher rate but they are more restrictive on the condition of what you can buy.

Don't restrict your search to the nationwide chains -- there are a lot of small neighborhood banks, and they usually have some properties they'd like to unload.(* Fear)

Here's what I include in my due diligence:Are the taxes current - call the county and askDoes the property have access to water (city utilities or well) and what's that mean for your intended useDoes the property have access to septic/sewer (city utilities or well) and what's that mean for your intended useWhat is the property zoned and can you use it for whatever you're intending to use it forIs it in an HOA /POA/LOA (Home/property/land owners association) if so, does that add certain usage restrictions and what are the monthly feesDoes the property have electric (and does that matter to me)Is the property in a flood plain or wetlandsDoes the property have access (this is huge), does it have road access - perfect, if not then does it have an easement of some kind that lets you get to it - I'd be very hesitant to buy something without an easement without talking to a lawyerHave you seen it in person?

Usually, it’s a deed restriction violation and can subject the landlord to monetary fines from the HOA.Personally, I like chickens and eggs, they taste great, but it may be time to add the dreaded poultry clause to all new leases.  

I also dug up the deed restriction since there is one on this property that limits its use.

The local politicians are upset as they feel like the 2.5% cap will restrict growth. https://www.austinmonitor.com/stories/2019/02/loca...