Real Estate/Short Term Rental questions

[-CarlHungus-]

I have been passively looking for a mountain house or a farm house as like a weekend getaway/holidays type of thing. Our hope was that we would occasionally rent it out to mitigate some costs and utilize some tax advantages. However, the property does NOT need to be cash flow positive - I don't view it as an investment fully. More of a family get togheter place and maybe even something we could give to the kids later on.

Anyway - we have found a place we may be interested in. However, it states in the listing the HOA (it is pretty remote, but a few houses on the mountain have banded together I suppose to have an HOA) will "not allow short term rentals."

I'm trying to get more info on this (I requested the HOA covenant), but are there ways around this, like having a guest sign a "30 day lease" even if anticipated stay is just 1 week?

 

[i am herdman]

I have been passively looking for a mountain house or a farm house as like a weekend getaway/holidays type of thing. Our hope was that we would occasionally rent it out to mitigate some costs and utilize some tax advantages. However, the property does NOT need to be cash flow positive - I don't view it as an investment fully. More of a family get togheter place and maybe even something we could give to the kids later on.

Anyway - we have found a place we may be interested in. However, it states in the listing the HOA (it is pretty remote, but a few houses on the mountain have banded together I suppose to have an HOA) will "not allow short term rentals."

I'm trying to get more info on this (I requested the HOA covenant), but are there ways around this, like having a guest sign a "30 day lease" even if anticipated stay is just 1 week?

My guess is(a guess) is I would not test that water. Or just be up front and get the answer in writing. My advice, would be not to try to get away with it because if you invest it and borrow money(or use your money) and get caught it would epxose you to financial hardship. Your issue is going to be, even if they sign a 30 day lease, is that you are knowingly not abiding by and would be falsley creating a document. That could land you in hot water.

People, regular residents, are going to see peopele coming and going weekly or daily. Then, then the HOA gets a call and you are in trouble. Not worth the risks. You could also open yourself up to insurance problems and so on.

 

[raleighherdfan]

I have been passively looking for a mountain house or a farm house as like a weekend getaway/holidays type of thing. Our hope was that we would occasionally rent it out to mitigate some costs and utilize some tax advantages. However, the property does NOT need to be cash flow positive - I don't view it as an investment fully. More of a family get togheter place and maybe even something we could give to the kids later on.

Anyway - we have found a place we may be interested in. However, it states in the listing the HOA (it is pretty remote, but a few houses on the mountain have banded together I suppose to have an HOA) will "not allow short term rentals."

I'm trying to get more info on this (I requested the HOA covenant), but are there ways around this, like having a guest sign a "30 day lease" even if anticipated stay is just 1 week?

HOA on a mountain side telling you, you're not allowed to rent it out?? F*** that. Next.

 

[-CarlHungus-]

Thanks, all.

I haven't been to visit the property, but it checked all the boxes other than this hiccup.

I may just move on.

It's probably why the price is about 100K less than I'd expect for similar properties.

 

[raleighherdfan]

Thanks, all.

I haven't been to visit the property, but it checked all the boxes other than this hiccup.

I may just move on.

It's probably why the price is about 100K less than I'd expect for similar properties.

Good. Now where was this property exactly???? 😂 😂 😂

 

[Raoul Duke MU]

You looking at the house up the east side of Sods? I was surprised to see it had an HOA.

 

[-CarlHungus-]

You looking at the house up the east side of Sods? I was surprised to see it had an HOA.

Nah, different part of the country.

I was shocked there’s an HOA on this property but as I understand it air bNB has changed the mountain home stuff so I’ve heard people are banding together to limit it. It will help drive down pricing I’d expect.

 

[johns1124]

Renters will never take care of your property like you will.

Depending on the state Mt. Houses can be tricky when it comes to fire insurance. Fire is the most expensive insurance in those areas. Kind of strange to have a remote house in HOA. Usually, the further you go out, thats something you don't have to worry about.

 

[WV-FAN]

You looking at the house up the east side of Sods? I was surprised to see it had an HOA.

i hope it brings asking price, will only inflate the appraised value of mine since it's like 10 or 11 miles away.

 

[Raoul Duke MU]

i hope it brings asking price, will only inflate the appraised value of mine since it's like 10 or 11 miles away.

Part of me is like a mil and a quarter is a strong ask, but values have been shooting up in that region. Probably damn out of state big city people buying it up.

I'm hoping to hit the lottery so I can buy the Sinks of Gandy.

 

[SamSwimmer]

I have been passively looking for a mountain house or a farm house as like a weekend getaway/holidays type of thing. Our hope was that we would occasionally rent it out to mitigate some costs and utilize some tax advantages. However, the property does NOT need to be cash flow positive - I don't view it as an investment fully. More of a family get togheter place and maybe even something we could give to the kids later on.

Anyway - we have found a place we may be interested in. However, it states in the listing the HOA (it is pretty remote, but a few houses on the mountain have banded together I suppose to have an HOA) will "not allow short term rentals."

I'm trying to get more info on this (I requested the HOA covenant), but are there ways around this, like having a guest sign a "30 day lease" even if anticipated stay is just 1 week?

Are you paying cash? Rates on second homes & investment properties are crazy high right now

 

[Raoul Duke MU]

Depending on the state Mt. Houses can be tricky when it comes to fire insurance. Fire is the most expensive insurance in those areas.

This is becoming a big issue in Colorado. And I imagine it's the same around Gatlinburg after what happened.

 

[-CarlHungus-]

Are you paying cash? Rates on second homes & investment properties are crazy high right now

Probably mostly cash.

 

[SamSwimmer]

Probably mostly cash.

Fannie isn't (& likely won't be) trying to help out non-primary residence borrowers for a while.

 

[-CarlHungus-]

Fannie isn't (& likely won't be) trying to help out non-primary residence borrowers for a while.

Like I said, i've been passively looking. I was probably going to do 75% cash, 25% financed. If I have to do all cash I would if I liked it enough. I've been saving for a while and now 5% rates on money market helps too with that. I hate debt, even though often the smarter play is to take on debt I typically steer away from it.

 

[johns1124]

This is becoming a big issue in Colorado. And I imagine it's the same around Gatlinburg after what happened.

In the Sierras, it's fairly costly. Will even out though, when it comes to other types of insurance and taxes. But none the less. Something to keep in mind when you are going rural.