What should you do when you face a special assessment?

[Gene K.]

In one of the properties, which is my primary residence, the Board of Directors is planning to implement a special assessment, close to $40K. It's a lot of money. The dilemma I have is to pay it off right away, lower the mortgage, or buy an investment property, or perhaps invest money somewhere else.

I'm thinking of investing in a rental. The problem that I live in Florida, and we have crazy HOA fees that make almost every investment property, not very profitable. After you deduct Taxes, insurance, repairs, HOA fees, and income taxes, you won't make a lot. In some of the cases, you break even.

What would you recommend in this situation?