You are also using #s to negotiate on something that people value emotionally.

With the STR we likely won’t break even with rental income from the house alone in first year or two but for us the emotional benefit made up the difference.

Right now we're more emotional about everything...it's a very personal kind of thing, in a way, but we know to really make this work we need to start approaching it as a business.

Walking the unit now, and me seeing damage might cause frustration on my end, and lead to an emotional reaction. 

Do not give up if your 1st deal is not very good for you and do not let your emotion make an important decision. 

This is far too personal, too emotional, and too apologetic. 

A lot of emotion gets involved and the HOA wants the people out.Depending on the property condition, the HOA could foreclose then rent out the place until the bank can get around to foreclosing.I have assisted quite a few HOAs in the past who have foreclosed not having a complete understanding from their attorney about what happens to the 1st mortgage.

Short sales are filled with too much emotion and paperwork.Wholesaling, I would liken this too exept I dont have to drive around town looking for properties, just look at what banks have to offer.I really dont want to be bothered with Renting properties , although I do have it in my plan to hold on to a acquire a couple LO or sub2 for long term.To get started here in REO I planned to get a private money loan, last choice is hard money.

Since majority of them make emotional decisions rather than more logical ones.

This might seem very unconventional, and this is totally just my own opinion, but maybe you should just take a look at what the most is you are going to get out it financially after lawyers, and decide if this is really worth the emotional drain and continued hurt.