You almost never recoup costs lost.This is a contract dispute, and you will most likely be paying the attorney up-front for prep, plus additional litigation fees.

The lender's title insurance company plans to include the CC&R as "exceptions" to the title, does it mean they'll not cover the loss due to any dispute?

Try talking to him to see if you guys can come to a resolution.

That’s something that cannot be disputed how that an lead to any “Boom” as you say is not realistic. 

Be sure to post your resolution and how it all plays out!

Well typically you'd want to get a lawyer involved to draw up a contract, since he's your brother I'm not sure if that's what you want to do but regardless you need to agree on the terms of the business relationship beforehand to prevent any disagreements and disputes:1) Who makes major decisions (ie renovations, evictions, selecting tenants, etc.).

Sure, when it comes in low you can dispute it with your two comps but I don't think your bank will accept something so far off.If you can get past ethical considerations I think this will ultimately cost you money and it won't work.

Here in upstate NY it is NOT a local custom to expect central AC, and window ACs are typically purchased by the tenant if needed to adjust the interior climate to their liking.Another thing you can do before you run out and buy your AC units, is ask the tenants what they think would be a fair resolution. 

* What do you do to ensure that the tenant is responsible for security deposit disputes since that is the largest reason for owner lawsuits* How familiar are you with the newly changed laws that can affect you the owner if they are not used correctly?.

I've laid store bought traps through the kitchen area, but we're in need of a long term resolution.