I have been lurking here for a while and have learned quite a bit - thank you! I am new to Real Estate investing, and have been looking to purchase a condo in a ski town. There are a few that are listed as short sales and seem to be a good value. I would like to purchase one to rent as well as use myself on occasion.
I was told by a mortgage broker that you cannot get a mortgage for a condo where the HOA allows nightly rentals. I am looking to put 20% down, but he told me that Fannie Mae and Freddie Mac rules will not allow a loan in this scenario, and that you have to pay cash for the full amount.
Renting a condo nightly may or may not violate your local or state zoning laws, or something similar, depending on where it is and how you are renting out exactly (e.g. you don’t want to engage in any form of real estate leasing that may require you to have a license like a hotel or motel, without getting that license).
You need to do a little research on what you’re doing by talking with a real estate agent OR lawyer in your state.
I know in Texas it’s very common to rent a condo or beach house in various coastal cities in Texas & Florida for just a weekend or a night, and virtually all the rentals are handled by a local real estate agency of some sort. So it can be done.