Hello!
This is my first post. I’m planning to get into REI in the near future. I’m live in Tampa and the market is pretty hot here. I was looking into new construction, but I heard some builders have in their contract that the property has to be owner occupied for a year. Can they find out if I rent out the property?
My wife and are buying our first home, we close on June 28th. This house will be for us, then afterwards I wanted to buy a new house and rent it out.
jrock,
I invest in Vero Beach, where the market is not bad. I built my first 2 house & have rented them from new. I suggest you rethink buying a new house to rent, for a slew of reasons.
If you sign a contract, I suggest you abide by all provisions of the contract. I would hate to see you be the one buyer a builder makes an example of.
Contgratulations on your new home. Enjoy it.
Ray
They do that because to get the widest range of financing, the complex has to be Fannie Mae approved. Fannie Mae has limits on the % of investors in a community before they will approve it. Also complexes that are heavily populated by renters get run down faster so its in the interest of all the owners to limit the number of rentals.
Once the Fannie Mae approval is done which should be soon after 70% of the units are sold, you can probably do what you want. Thats why they have only limited you to 1 year. They think they will have their approval by then.