Recently we had a young couple come into our office and apply for a mortgage for their first home. Excellent scenario, great income, credit, etc. well qualified.  This is where the proverbial other shoe drops... We received the completed condo questionnaire to learn that of the 150 units in the complex 30 of them were owned by one investor. This concentration is an issue with many banks. The borrowers just couldn't understand how this made such a difference. Each time we have a situation such as this it is always difficult for the borrower/buyer to grasp how this is such a "big deal" . Think of it this way. This represents 20% of the units in the complex. If that one owner all of the sudden can not pay his HOA dues and also allows his units to fall into disrepair imagine the impact that would have on all of the other units. Not only the potential for increase in monthly dues to compensate for the loss but also the effect this could have on the overall marketability of the other units in the complex. With one person/entity owning so many of the units and the potential risk that goes along with that, many lenders will find that unacceptable. If you are considering a purchase in a condo complex please do your homework. Ask about investor concentration and get a copy of the current budget.