Orlando Condo limiting STR by HOA

[Catherine Javier]

Hello everyone! I need your expert opinion on this property. 

We have a 2 bed 2 bath furnished condo in orlando. We bought it 2021 august for $182500, placed down 20% and will pay for 15 yrs. We use it as short term midterm rental 3-30 days and we earned $80000 for 2024. Mortgage with hazard is about $1550 @ 2.25% per month very affordable however HOA is getting steep at $415/month. Recently, the HOA saw our ads in Airbnb and wants us to remove our listing since HOA bilaw indicates they only want 6 month minimum listing. Most of our guests are from airbnb, some from furnished finder. The HOA does not know about the furnished finder platform. With this kind of situation, with HOa limiting us with renting our property, should we just sell it? Or keep it?

We really love this property, very safe, good neighborhood! However, we want to hear others opinion.

We have other Airbnb in Orlando, non HOA and it is really wonderful! Non restrictive! Should we just invest in Washington where we currently live?

Thank you in advance! All your info will be appreciated!

[Tyler Gibson]

Quote from @Catherine Javier:

Hello everyone! I need your expert opinion on this property. 

We have a 2 bed 2 bath furnished condo in orlando. We bought it 2021 august for $182500, placed down 20% and will pay for 15 yrs. We use it as short term midterm rental 3-30 days and we earned $80000 for 2024. Mortgage with hazard is about $1550 @ 2.25% per month very affordable however HOA is getting steep at $415/month. Recently, the HOA saw our ads in Airbnb and wants us to remove our listing since HOA bilaw indicates they only want 6 month minimum listing. Most of our guests are from airbnb, some from furnished finder. The HOA does not know about the furnished finder platform. With this kind of situation, with HOa limiting us with renting our property, should we just sell it? Or keep it?

We really love this property, very safe, good neighborhood! However, we want to hear others opinion.

We have other Airbnb in Orlando, non HOA and it is really wonderful! Non restrictive! Should we just invest in Washington where we currently live?

Thank you in advance! All your info will be appreciated!

Where in Orlando specifically? If you are in Orange County, then you are breaking the law with stays less than 7 months. If you are in Osceola, Lake, or Seminole County, then the regulations and rules fall to the city and then the HOA rules. If you continue to violate the HOA bi-laws, they will start to fine you. If you continue, they could seek further legal action. Here in Florida, HOAs have the legal power to foreclose on your property.

I am guessing that the agent you used to buy did not specialize in investing in the area, or they would have guided you to other options where you can legally rent short-term. 

Selling condos in Florida is tough right now due to the increased HOA fees and assessments that many communities are experiencing.

It may be worth keeping if it still works as a long-term rental. If it doesn't, then you may want to explore selling.

If you have a great interest rate then you might want to consider doing seller wrap mortgage sale. You could create passive income this way and it would make your listing stand out against all the other condo listings here in the area. 

Only 1% of all listings offer seller financing so doing a seller wrap makes your listing better than 99% of all listings on the market simply by offering it.