I was showing townhomes today to some investors who would of course turn them in to nice rental units. However, we are increasingly running in to associations that have newly created restrictions against investors. Typically the way it works now is that they require a new owner to live in the unit for 2 years before turning it in to a rental unit. Apparently the thinking is that accidental landlords will become better landlords and have better renters than professional investors. Perhaps they are right.
The boards believe they are better off with owner occupied units no matter what the price. It’s a difficult decision because it’s likely that prices will continue to slide for these big townhome complexes as they seek owner occupants. There are plenty of investors ready to purchase but can’t because of the restriction.
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