Does HOA have loss of income insurance or some fund to make up the losses until owners get property rehabbed or built?

This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.This example shows that while the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall annual loss.

I also see people in your situation who as a newbie do okay, that's all I'm gonna say about it and you can take what you want from that because I don't have the Magic Pill to give you to make this work.

Many people are suggesting to do a 1031 but have no idea what your gain / tax is(if any).Co-ops in the tri-state area 'normally' don't appreciate a crazy amount.The main reasons is the high monthly maintenance costs, over-leverage of the board, potential difficulty of buyers getting a mortgage and the approval process of the buyer.With that said, talk to your CPA to discuss what your gain / tax would be before thinking about a 1031 exchange.If your tax burden is low, don't bother with the 1031It may be possible that you have suspended passive losses to cover your tax burden.best of luck.

Meanwhile, my investors that bought a property from a REIT had a 60% paper loss from just purchasing the property. 

However, it may make it harder to fill the common equity piece as the more preferred equity there is, the less desirable the common equity becomes because of risk of loss.

If rents do not increase above $1900 that a loss if they do increase it seems it might be a low NOI.  

I'm looking to offset rental income.I can't take a passive loss against my W2 income.

You would not be able to exclude it from your DTI until you filed with it on taxes (assuming you did so and did not report a loss). 

Equity investments can suffer a 100% loss—the FDIC doesn’t want to pay this claim.2.