Reality is insurance has sky rocketed then the sea side towers related inspections has led to special assessments and further increases to HOA monthly fees.Income to value ratios that could work in much of the country do not produce the same results in Florida.Best wishes

Even if they're relatively turnkey, you can refinance and pull capital 3-6 months later if you goal is to scale

Shiny object syndrome is real! 

.• Paying $30–40k just to reduce a monthly loss is not investing, it’s subsidizing.Now the real decision framework:Option 1: Keep and subsidizeThis only makes sense if:• You are comfortable treating this as a long-term appreciation play• The monthly loss does not limit your ability to invest elsewhere• You expect strong rent growth relative to expenses over timeIf you go this route, minimize loss:• Rent at the top of market, not “safe” pricing• Self-manage initially to reduce drag• Keep reserves tight and intentionalOption 2: Sell and redeployEmotionally hard, but financially clean.• You cap the loss once• You free up capital and bandwidth• You avoid 10 years of hoping the math fixes itselfMany investors underestimate how powerful not carrying a bad deal can be.Option 3: Improve economics without refiBefore injecting $30–40k, explore:• Roommate or mid-term rental strategy (if HOA allows)• Employer-backed or furnished rentals• House-hack style repositioning if layout allowsThese are operational fixes, not financial ones, but sometimes they bridge the gap.The biggest mistake to avoidHolding purely because “it should appreciate” while ignoring opportunity cost.

Here’s the situation: The property was being operated as a 6-bedroom rentalThe owner converted the garage into a bedroomAccording to the seller’s agent, the property was cited by the city for code compliance, mainly related to parking requirementsThe city allegedly required either:Adding additional parking (such as building a carport), orReducing occupancy / removing tenants   The seller chose not to add a carport, and instead removed 3 out of the 6 tenants.The agent also mentioned that if a carport is added, the property could legally go back to renting to all 6 occupants. 

It sounds like you bought a solid duplex with strong rents relative to price, so there’s nothing wrong with letting that asset perform while you rebuild capital.

I was surprised by the low ARV in relation to the high HOA fee. 

You may also want to consider extending the note to 40years or incorporating some sort of interest only for a portion of time if max cash flow is an objective.

Relatedly, does the cash flow used to calculate your cash-on-cash return fully account for professional management fees, leasing fees, realistic vacancy assumptions, and operating reserves?

As it relates to real estate the same thesis applies..Poorly and speculatively built new construction and zero lot line properties by publicly traded companies will decline in 'value' and demand.