HOA issues - sell or hold?

[Avery Lee]

I'm a newbie investor and purchased my first property, a townhome in Tempe, Arizona last year. I looked into the HOA when purchasing the property and they had what seemed to be plenty of $$ in reserves however now we're getting notice that they're severally underfunded and need about $10k per property in order to replace the siding on each property. On top of that, because they're underfunded they've been increasing their violations and we've received at least one every other month for minor things. They're getting ready for a vote for a 20% monthly increase and stated that future increases and/or an assessment would be necessary. If approved, the monthly HOA fees would be at $280 per month which is significantly higher than other complexes and only increase from there. I'm contemplating selling before the potential increase that would take effect in January 2024. We're getting a good amount in rent so I hesitate selling but I'm thinking it might be better to get out while we can and purchase in a non-HOA community before it starts affecting my property value. Any thoughts?