Need Advice: HOA & Insurance Challenges with My First Investment Property

[Diana D.]

Hi BP community,

First, I want to express my deep gratitude for the time and effort that you dedicate here to helping others get into real estate investing. Thank you for sharing your knowledge and helping make informed decisions.

Here is my question. Last year I bought my first investment property located in Sarasota, FL, 10 minutes away from Siesta Key. The house is a B-level property in a B-level neighborhood. I purchased the property for $690K and invested an additional $20K in remodeling. Unfortunately, I did not verify the information provided by my agent regarding HOA restrictions and home insurance costs. I trusted this agent because she was recommended to me by one of the MTR gurus/book writers as a high professional investor-friendly agent.

I had planned to implement a mid-term rental (monthly) strategy, but I cannot do so due to HOA restrictions and high insurance costs. The HOA restrictions limit me to renting the house only twice per year, and the insurance cost for rentals shorter than six months is significantly higher ($12K-$14K) compared to rentals longer than six months ($4K). I learned about these restrictions after I could no longer return my earnest money. I have been trying to sell the house for six months, initially listing for 710K, but I haven't received any offers. Dropping the price further would result in more loss of at least $50,000 due to agent fees.

Questions:

Given my current situation, would you recommend selling the property, including offering seller financing, or keeping it as a long-term rental for a few years and then considering selling?

What key factors should influence my decision on whether to sell now, offer seller financing, or keep the property as a long-term rental?

Thank you for your time and advice!