[Fastrudy]

I'm curious, where is this house you can't rent located and what is the name of the HOA?

[Tires]

Originally Posted by unf0rgiven6262

I'm waiting for the day when companies and legal departments can't hide behind hundreds of pages of red tape. It's true you should have read it but it reaches the point of absurdity when you have to absorb that much information. It's like buying a car and having to read a 1000 page agreement that states that you can only fill it up with gas once before it self destructs.

There is no way you have to read the entire CC&Rs cover to cover line by line to find out whether a property you plan to purchase and rent out has restrictions against that.
That is very basic question you can find out by calling the HOA property management or have your realtor find out for you.
Same as any questions about how much the association dues are or about parking if you can't fit all your vehicles in your garage and/or driveway/carport or if you don't like the way the exterior looks and you want to change it.
If everything sounds fine after screening major deal breaker issues in advance, then you can carefully read the CC&Rs during escrow and back out if you find other rules you don't want to live with.

[plum12345]

Originally Posted by Atlas1337

I suppose it depends how aggressive the HOA is. My advise is to just rent it out anyway (short term or month to month lease) and see what happens.

Pay the dues on time, keep everything clean, make sure the tenant is willing to cooperate, and they probably won't even notice...

Check the HOA fine structure. Some HOAs have escalating fines. If they don't, just pay the fine every month. Even if it's $100 per month you might still make money.

[eventusstultorummagister]

"make sure the tenant is willing to cooperate"

Apparently you've never lived in a condo before, allow me to clue you in. In my own personal experience of condo ownership it was a given that renters would routinely ignore the rules ie. barbequeing on the patios and balconies (violation) and then dumping the smoldering embers down the garbage shute and igniting a trash fire which required the summoning of the city fire department and nearly burned down a portion of the complex and caused the insurance deductible for the structure to double. Breaking into the cable junction box and installing splitters in order to acquire cable TV/internet for free. Parking in other peoples assigned parking spaces. Keeping large dogs (violation) and allowing them to swim in the pool (violation). Shall I continue, the list goes on and I witnessed it firsthand and it was ALWAYS the RENTERS who were responsible. They don't care, they just move and the only thing the rapacious landlord is concerned with is occupancy and cash flow. Seriously, I was close to throwing blows with these chuckleheads. That's the reality. Peace.

[Tires]

Originally Posted by eventusstultorummagister

"make sure the tenant is willing to cooperate"

Apparently you've never lived in a condo before, allow me to clue you in. In my own personal experience of condo ownership it was a given that renters would routinely ignore the rules ie. barbequeing on the patios and balconies (violation) and then dumping the smoldering embers down the garbage shute and igniting a trash fire which required the summoning of the city fire department and nearly burned down a portion of the complex and caused the insurance deductible for the structure to double. Breaking into the cable junction box and installing splitters in order to acquire cable TV/internet for free. Parking in other peoples assigned parking spaces. Keeping large dogs (violation) and allowing them to swim in the pool (violation). Shall I continue, the list goes on and I witnessed it firsthand and it was ALWAYS the RENTERS who were responsible. They don't care, they just move and the only thing the rapacious landlord is concerned with is occupancy and cash flow. Seriously, I was close to throwing blows with these chuckleheads. That's the reality. Peace.

I have seen some renters that were fine and not really noticed at all, but, yes, the majority of "problem" homes in the community I lived in were occupied by tenants with a landlord that was hard to reach in some other city or state.
The tenants generally are ignorant of the rules and then don't really care when they are brought up to date. The landlord could care less what's going on regardling violations as long as they get their rent check since they don't live in the community or have to look at it.
It takes severe and escalating fines to get their attention.

[capoeira]

Originally Posted by Exaday

Aside from that we don't want renters in our neighborhood. They bring down property values.

This is complete fantasy and 100% incorrect. Suppose by job transfer or loss of job you are forced to move. The intelligent thing to do is to rent out your home and wait for better market conditions to sell. However if you happen to have a braindead Nazi-like HOA that prohibits renting you are forced to sell at market for lower price. This drives down the comps and devalues all the homes in the neighborhood.

[olecapt]

Originally Posted by capoeira

This is complete fantasy and 100% incorrect. Suppose by job transfer or loss of job you are forced to move. The intelligent thing to do is to rent out your home and wait for better market conditions to sell. However if you happen to have a braindead Nazi-like HOA that prohibits renting you are forced to sell at market for lower price. This drives down the comps and devalues all the homes in the neighborhood.

I disagree.

I have a current projection that says virtually all condos in Vegas will go owner occupied or investor/renter but very few will split.

The argument is that majority renter places will not be financeable and will have low appeal to owner occupants even if financing were available. They will therefore be priced to the rental market at a value providing reasonable yields.

The reasonable economic yield number will generally be a good bit less than the owner occupant is willing to pay for a similar place. The owner occupant however must believe the development to be desirable and livable .

Single family residences will be somewhat different in that the communities will remain more mixed and will tend to go back to owner occupancy as values increase...an investor looks at the value of his portfolio as the property values increase and will tend to sell if the rent driven value gets to be a lot less than the owner occupant value.

One could of course invert all this if the value as a rental was to become more than the owner occupied value. Don't think this has ever been true though in the Las Vegas Valley.

[Tires]

Don't buy or rent a house or condo in development where the CC&Rs are the opposite of what you want.
If you might want to rent your next property out and one of the listings is a rental restricted community, cross the place off your list and move on.
It's not as if there is a shortage of properties available without rental restrictions in Las Vegas.

[matlock31]

From one investor to another put the house under contract and cut your lose with a Realtor or If you know of a good Attorney Sell the home with Owner Finance and just cash flow. There is alway a opportunity with all adverse situation.

[eventusstultorummagister]

Originally Posted by matlock31

From one investor to another put the house under contract and cut your lose with a Realtor or If you know of a good Attorney Sell the home with Owner Finance and just cash flow. There is alway a opportunity with all adverse situation.

Tax downside? As a landlord he's entitled to depreciation/expenses to offset the income but if he sells he can only declare the interest and a fraction of the principal, correct?