Side note: we’re not apartment owners or developers, which is excluded. 

In this case there were actually two HOA's involved, found that the language in the title policy excluded one of the HOA's.

They exclude the most probable things many times and leave in stuff that rarely happens.

The REO title companies often don’t search for “unrecorded” liens (code violations, utilities, etc) and they exclude these in the B Exceptions.

My thoughts are if you are paying all cash you might want to get a very steep discount so that would exclude most turnkeys at this junction.

My assumption here is that your paper return showed a loss for your rental, and thus you are being excluded from using that as income. 

The cement floor was upheaved when we bought it there is a garage with plenty of storage so we just locked the shed and excluded it’s use from the lease.

Problem in your calculation is that since this is a first-timer purchase, you also have need to exclude your own payment of rent since you will be living there, for true calculation of cash flow.

Can you please escalate this request to a manager or someone who can explain the business decision to exclude Puerto Rico?

Having said that I will not exclude a property just because it’s built prior to 1978.