Orlando Condo limiting STR by HOA

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Orlando Condo limiting STR by HOA

Catherine Javier
Investor · Member since 2021 · 96 posts · 19 votes

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!

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Tyler GibsonBusiness Member
Real Estate Agent · Orlando, FL · Member since 2017 · 1k+ posts · 2k+ votes
1y
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. 

[email protected]407-590-9858
GPG Team 596 Reviews
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  • Tyler GibsonBusiness Member
    Real Estate Agent · Orlando, FL · Member since 2017 · 1k+ posts · 2k+ votes
    1y
    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. 

    [email protected]407-590-9858
    GPG Team 596 Reviews
    WebsiteView Page
    1Reply
    • Catherine Javier
      OP
      Investor · Member since 2021 · 96 posts · 19 votes
      1y
      Quote from @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. 

       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

      0Reply
    • Tyler GibsonBusiness Member
      Real Estate Agent · Orlando, FL · Member since 2017 · 1k+ posts · 2k+ votes
      1y
      Quote from @Catherine Javier:
      Quote from @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. 

       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


       If you bought it as your personal residence then I would assume you have a pretty good interest rate on the property with your loan. Sounds like your property would be a great candidate to do a creative finance sale using a seller wrap mortgage. This would turn that low interest rate mortgage into an asset that pays you over time. If you have any additional questions, I'd be happy to answer them for you.

      [email protected]407-590-9858
      GPG Team 596 Reviews
      WebsiteView Page
      0Reply
  • Jaren Woeppel
    Lender · St. Augustine, FL · Member since 2015 · 120 posts · 26 votes
    1y

    @Tyler Gibson had a lot of great advice there!

    From the financing side, condos are difficult to finance as a qualified mortgage, because there are so many variables with the HOA and the fees, especially in Florida since the collapse of the condo in Surfside and the new Condo 3.0 safety laws were passed.

    That being said, most condos would have to be financed as Non-QM loans, which have higher interest rates compared to a qualified mortgage. I say all this to say, a big automatic disqualification for a condo to be approved by HUD, thus being a condo that can be financed with a qualified mortgage, is short-term rentals. If the condo association allows for short-term rentals, it most likely is not going to be HUD approved, which will mean each unit has to be purchased in cash or using a Non-QM loan. Ultimately, that may drive the price of the units down because it is affordable to less people.

    I am not sure what condo association you are in, but if you want to connect offline I can help you look into that information. 

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