With investor activity having steadily increased over the last couple of years, I can't say that I'm surprised. One of the main reasons I see for this change to owner-occupied exclusively, is financing within the complex.
For homeowners looking to refinance their properties, it could be detrimental finding out that there are too many tenants in the complex for a standard refinance to be possible. Similarly, if an owner is trying to sell their home, and financing is not available in the complex due to a high number of tenant-occupied units, that could potentially lower home values and leave inventory stagnant in the area.
But not to worry -- this trend has seemed to latch on to complexes perenially known for a high investor presence, such as the Textile Building in Downtown's Santee Village. Perhaps they felt they wanted to cap off the number of investors they already had in the building, so placed this restriction on for any new home owners coming into the building.
In either case, something to look into and be aware of if you are an investor, or looking to purchase a home. As a homeowner, it could help you edge out your offer and win in a multiple bid situation if the other offers you're dealing with aren't all cash investor offers!
Happy Buying and Selling!
Caroline Choi Real Estate
Caroline Sells The City LA