I’ve followed BiggerPockets for a while through blogs and YouTube.

Then It would follow Santa Clara county ordinance right?

I would feel pretty good dropping an offer on one of the properties today but I don't have anything lined up to actually follow through on it.

If anyone knows the Virginia market, this property is located in Petersburg, VA in case that influences your feedback.I have negotiated subject to and owner financing to purchase the deal using the following structure: I will pay $8k in cash I will take over the existing $59k mortgage payments (28 years left) of $506.70/mo PITI paymentsThe owner will wrap the remaining $8k into a second 15 year mortgage of principal only payments of $44.44/moTotal monthly payment $550/moThe Deed of Trust will transfer to me at closingI will sell the property via Owner Financing to a tenant buyer using the following structure: Purchase price $85kPay $10k downI will finance the remaining $75k for 10 years at 10% interestMonthly payments of $1000/moBuyer may cash out anytime after the first 5 yearsTenant buyer covers repair costsDeed of Trust transfers when tenant buyer cashes property outBasically this strategy is a way to get all my money invested out of the property and avoid typical rental property expenses to keep all of the cashflow.

Lenders have to follow Fannie Mae/Freddie Mac Guidelines for conventional mortgage programs, which I'm assuming you're going for. 

When I inquire with lenders I give them the following info:Property: Investment rental (non-owner occupied SFH)Credit Score: >740Loan Amount: $80-$120KRequired LTV: 80%While im on a site like Zillow looking at properties, Ill often try to to look up rates (and APRs) and after entering in the information above  I see numbers in the mid to high 4s.

So you can follow Jason's recommendation to sell nicer properties and purchase more cheaper properties that provide better cash flow.Of course in the modern 1031 a qualified intermediary is required to facilitate and document the process of you selling and buying.

Bottom line is you can jump through hoops to insure your HOA follows the proper procedure so they can legally enact the new regulations or you can move on when your tenants lease is up.

That "disproportion" erases net cash flow for investors looking to buy SFHs in the current market as they look at their spreadsheets.That said, my secondary follow-up question is this.  

The following is my loose game plan for the next couple years.