Our biggest expense was replacement vinyl siding, which costed around $40K.

I contemplated appealing it, but I figured I would go after the PM instead, which I plan to do.

My question is: If the HOA changes the bylaws to ban smoking (which they plan to vote on), and the lease held by the smoking tenant only specifies no smoking "within the unit," is there any legal recourse for the smoking tenant?

The time is on your side unless the seller is planning to not sell the property since now he knows that he needs to find a cash buyer to sell the property at the asking price. 

For the most part, due to interest rates, breaking the 1% cap rate still won't provide positive return after expenses.

Lets go under at $800 so now monthly expenses are $3,800.

However, if the 401k has business income, it will be subject to UBIT.An IRA is not subject to capital gain taxes because it is a tax-deferred retirement plan.

This does pose a challenge since that real estate is a lot more expensive than if you go more west and south.

I plan to utilize some cash, margin loan, 401k loan, and a HELOC as a down payment.My first house hack (now an out of state investment) has a Zestimate of $530K, and I have $266K left on the loan.

Or are you planning to put 100% of the risk/cost of vacancies, furnishings and tenant nonpayment on the owner with you having 0% risk?