Is it true that a sponsor unit in a co-op building doesn’t fall under the building’s subleasing rule and can be a good investment property?

Q: Is it true that a sponsor unit in a co-op building doesn’t fall under the building’s subleasing rule and can be a good investment property? Thanks.

A: Co-op rules and regulations with regard to sublet policies vary from building to building but, in most cases, sponsor units (especially once such sponsor unit are sold) are required to abide by the rules, and therefore the co-op type of ownership does not lend itself to investors as well as a condo, which is less restrictive.