Buying a Condo on Anna Maria Island: ROI with Rising Costs

Florida’s new condo laws mean milestone inspections and reserve studies must be conducted every 10 years after the initial December 31, 2024 deadline. That translates into recurring special assessments when reserves fall short. Combine that with rising insurance and HOA dues, and Anna Maria Island Real Estate buyers need to model for cost increases — not just today’s numbers.

Example: $749,000 Anna Maria Island condo for sale with 10% Cost Increase

Purchase Details

• Price: $749,000

• Down Payment (25%): ~$187,250

• Loan Amount: ~$561,750

• Mortgage (6.5% / 30 years): ~$3,550/month

Operating Costs (Base vs. +10%)

• HOA Fees: ~$600/month → $660/month (+10%)

• Insurance (HO-6 policy): ~$3,500/year → $3,850/year (+10%)

• Utilities & Internet: ~$3,600/year → $3,960/year (+10%)

• Cleaning & Turnover: ~$4,000/year → $4,400/year (+10%)

• Repairs & Reserve: ~$5,000/year → $5,500/year (+10%)

• Platform Fees & Taxes: Scale with income

Total Annual Ops (Base): ~$25K
Total Annual Ops (+10%): ~$27.5K

Rental Income Potential

• High Season: $400–$500/night

• Mid Season: $275–$350/night

• Low Season: $175–$225/night

• Occupancy: ~65% annually

• Gross Income Estimate: ~$85K–$95K/year

Net Snapshot (with +10% costs)

• Gross Income: ~$90K

• Expenses (HOA + ops): ~$27.5K

• Net Before Mortgage: ~$62.5K

• Mortgage: ~$42K/year

• Net After Mortgage: ~$20.5K/year

Hidden Pitfall: Florida Real Estate Special Assessments

Even with ROI intact, a $20K–$30K special assessment (now expected every 10 years under Florida law) can wipe out a year’s profit. Buyers should:

• Review the latest milestone inspection

• Request the reserve study (SIRS)

• Ask about past and pending special assessments

At $749K, this condo can still generate ~$20K/year net after mortgage and expenses — but only if you plan for 10%+ cost increases and the inevitability of special assessments every decade. Smart buyers treat these as part of the ownership cycle, not a surprise.