Meeting with a real estate attorney is the right move, as they can confirm whether the HOA’s claim holds any water.

 @Nathan Gesner Funny you should say that as that is what we did yesterday ..we actually lowered it to $1685 and it looks like we have a renter  hopefully  ( fingers crossed ).Income verified , credit score etc It’s a bit low for me but we can get the mortgage paid, the heloc payments and the roof payments and still put some cash flow in  reserves each month as we will pencil out a bit.

Optimize your finances by reducing debt, boosting credit, and maintaining strong cash reserves.

Usually your reserves for those categories will range from 25-30%, although maintenance & capex should initially be minimal since the home is new.

If they do allow it, a third unit will need proper egress to get confirmed.

You also need 12-24 months of reserves so need to hold back some of your down payment money possibly depending on other assets that you may have.  

What can happen if I decide not to meet their reserve if they ask us to increase our offer?

They have good cash reserves.

Of course, you can hire a local inspector to confirm work is done before final payment, but that all requires some pretty decent process management.

My team hasn't set up any STRs in the Dominican Republic but we had acquired some STRs in Costa Rica which we had thought we're going to turn out well but we had a few issues to note:- Cashflow issues: Since we are basing our reservations on another currency we couldn't charge as much as we were hoping for. - Finding a Good Team: Since there is a language barrier in place it was much harder to communicate with any cleaning companies/property managers we found.