All Forum Posts by: Catherine Javier

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.

It is in Orlando, so Orange County.

I did not know about the HOA can foreclose. We bought it as our personal home initially and then we started getting intrigued with real estate and air bnb

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

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!

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Quote from @Eric Fernwood:

Hello @Catherine Javier,

This is a common question, Whether to keep, refinance, 1031, or sell. I created the following decision tree diagram to illustrate the decision process (click to enlarge).

The above decision process is based on the property’s performance record, with the goal of achieving financial freedom in mind.

Financial freedom is not just replacing your current income. It's about having an income that will enable you to maintain your current standard of living for life. This requires a rental income that meets the following requirements (click to enlarge):

Where to buy? The markets that can help you achieve financial freedom (see the Dependencies above).

Thanks Eric! This is useful for a newbie like us! Appreciate you!

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Orlando, Florida

Thanks Dave! So for a Qualified intermediary, I see that you are, does location/state matter? And what are the fees! Thank you!!

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Orlando, Florida

Quote from @Bonnie Low:

I'd sell if I were you. 1) I don't like HOAs and certainly not for STR or MTR 2) the numbers don't make sense for you to invest in a big kitchen/bath renovation 3) it doesn't look like it's appreciating very well. You don't necessarily need to invest in WA in order to be closer to home. WA is not a landlord friendly state, but if you are going to invest in WA, the eastern side has some hot spots like the tri-cities area that may yield good cash flow and appreciation and still be close enough for you to go there when you need to.

Thank you@Bonnie Low this is very useful. Now O will research about these tricity you mentioned!

1 Vote

Orlando, Florida

Quote from @Benjamin Aaker:

From your options, #1 is a big sink of cash and I can't tell how much that increases you rent. #2 is a no due to cash flow negative. #3 is the way to go. HOAs cause a lot of headaches for investors as their mindset is usually different. That's another reason to sell.

@Benjamin Aaker Thank you for your input!

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Orlando, Florida

Thank you @Jonathan Greene!
we changed the driveway because of the cracked cements of driveway cause by the tree roots. Hoa said that we need to change/repair driveway otherwise we will be fined.
We also had just a recent problem with plumbing due to tree roots. Hoa does not allow us to cut the tree though. They said it needs approval from city.

we appreciate your thought!

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Orlando, Florida

Hello everyone! Asking for your expert opinion. Any thoughts are appreciated!

We bought at $212k, we put 20% DP used DSCR(~45k because it was appraised at $206k).

Some of the updates we did: changed roof& hvac, minor cosmetics, replaced driveway spent probably $40k.

Remaining loan is about 152k @5.75%. Mortgage is only less than $1400. For 2025 we are assuming it will rise at $1500-1600

Same townhomes pending at $260’s; if we upgrade kitchen/bathroom around $275 up

Current tenant leaves Dec 31, 2024 Assuming rent stays the same for LTR, we will be cashflow negative since Home/Hazard Insurance and Taxes will increase inevitably.

Should we:

1. Upgrade/Renovate update Kitchen, Bathroom & Flooring which would cost us about $50-60k with furnishing, keep it as MTR or STR then refinance or **midterm rents 2400 and up with comps; then Refinance or….

2. No renovations, but cashflow negative (wont hire property manager anymore just to breakeven) @$170-1850

3. 1031 and buy in WA where we can manage on our own

Same problems with others, we have limited cash available. if we do buy on WA , few concerns are:

We are intermittently rehabbing our current home to be rented as Nursing Home eventually hopefully in 2 yrs.
home in WA are more expensive and would need higher downpayment and it would be challenging for us because our DTI is high already, we would have do to a dscr thats 100k++ DP

Sorry for the lengthy post, hope to hear from you!

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Orlando, Florida

Quote from @Nate Meeker:

@Catherine Javier

IRS Pub 527 states "Example. You rent a room in your home
that is always available for short-term occupancy by paying customers. You don’t use the
room yourself and you allow only paying customers to use the room. This room is used
solely as a hotel, motel, inn, or similar establishment and isn’t a dwelling unit."

Common areas don't apply. Only if you have a portion not used for anything else and you meet all other rules. You would want to allocate expenses on a sqft. basis.

Thanks!
by the way to qualify for the STR, of I am not mistaken it should be 7 days or less right

so 7.2 days immediately disqualifies me immediately?
or 8 days and above

I just averaged the length of stay…

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Quote from @Michael Plaks:

@Catherine Javier

I don't know a company local to you, but these three experts run their respective cost segregation companies that provide it nationwide: @Bernard Reisz, @Yonah Weiss, @Julio Gonzalez.

Also, read this post: https://www.biggerpockets.com/forums/51/topics/1075919-five-...

Thank you

1 Vote

Tacoma, Washington

All Forum Posts by: Catherine Javier

Catherine Javier has started 27 posts and replied 93 times.

Post: Orlando Condo limiting STR by HOA

Post: Orlando Condo limiting STR by HOA

Post: Keep, refinance or sell?

Post: Keep, refinance or sell?

Post: Keep, refinance or sell?

Post: Keep, refinance or sell?

Post: Keep, refinance or sell?

Post: Keep, refinance or sell?

Post: Cost Segregation on Primary Residence if renting out the basement

Post: Recommendations for Cost Seg?