If it 'fails' or would be excessively expensive to repair, you can just back out at that point and forfeit your EMD.

I make sure lease states that they forfeit their security deposit if they do this.  

We got the guy out, he forfeited his 2K deposit, and I also got a judgement against him over $4600.

I imagine that the length increases by some amount, but I doubt it would be a full year since many tenants feel fine riding out a month-to-month lease until they decide to leave.Do the downsides (forfeit of owner ability to increase rents after the year and potential to get stuck with a trouble tenant constantly calling for minor repairs) compensate for whatever this additional length of stay is?

Back end profits are what you receive over the longer time period, perhaps forfeiting some or all front end profits in favor of bigger opportunities on the back end. 

Someone correct me but I thought you forfeited your security deposit if you abandoned the lease?

Also, If you pay off your mortgage early and truly own your house the ability to leverage decreases and you forfeit the ability to invest that money in other vehicles that would ideally bring in better returns than the money saved through paying down your home.

If we decide to make an offer, is it possible to either 1.) make the sellers put the full price of repairs in escrow (even though the other unit holders will benefit from the improvement); or 2.) make the offer contingent upon the condo association putting a certain dollar amount in escrow to handle the repairs; or 3.) do a combination of 1 and 2 saying that if all of the owners don't put a certain dollar amount in escrow by a certain date then the sellers pay the full amount of forfeit the deal?

Could you imagine how this deal would go down if all the investors had to agree:(  Most lenders are not in the loan-to-own business, if it were me I'd forfeit interest in a heartbeat to avoid taking back a house in foreclosure.

The #'s still work if i can get it filled, but there would now be time and $ hurdles to clear before getting back to the financials I thought I'd be stepping in with.Now that the situation has changed, am I still obligated to go through with things or forfeit my earnest money?