With you having the property under contract that prevents the cash buyer from going behind your back for at least the time you have it under contract.

The purpose is to prevent suicide and homelessness through shared housing.

While there isn’t a specific rule that I’m aware of preventing this, I also know that the spirit of FHA financing is to help finance individuals seeking primary residencies, not investment properties.

I am assured that this time, a little bit of modesty will not prevent us from finding out. 

The inspection recommends grading the land next to the property and installing a gutter extension to prevent further washout and settling.

Hopefully it'll prevent this lull in work from happening again.

Related point:  If you are using a mortgage it may have clauses in it to prevent or trigger actions if you do a transfer.  

@Bob B. the HOA stated that, since there are only 4 units, they like to keep the fees low in order to prevent unneeded funds from sitting around. 

Not only that, but home ownership here prevents you from being a victim of rising rents.

You will have to remove snow and salt after every snow - a little over-precaution goes a long way in preventing lawsuits.I actually think your repairs/maintenance are probably fine for the long-run, but you might want to up to 15-20% the first year to get that owner's reserve to 10k. 10k does not solve all problems - but it takes a solid bite out of most.