It sounds like you have a good foundation already and that you understand the importance of being deliberate in your approach - kudos!

However, after much deliberation I have decided to pursue all of my focus on rental properties.

For example, if you were suing on mold that you discovered in the property, you should get a real estate attorney and have him or her prepare an affidavit that a mold remediation expert can put forward about the damages the mold caused in the property and why the previous owner knew, should have known or was deliberately unaware of the mold to your detriment.My state also allows attorneys fees on improper disclosure, meaning you can go really hard on these sorts of actions if you're going to recover, because the attorney can get paid $10,000 of attorneys' fees even if your recovery is only $4,000, for example. 

The Parties acknowledge and agree that any misrepresentation or deliberate omission of fact that would induce Bank of America, an Investor or a Mortgage Insurer to agree to the terms of a short payoff that would not have been approved had all facts been known, constitutes Short Sale Fraud and may subject the responsible Party to civil and/or criminal liability.12.

Most folks wander across quite innocently, but there are a few who deliberately try to tread along the edge.

That choice is a big part of the story of this book because the natural result of the 2nd choice is staying smaller (deliberately). 

I've held rental property since 2008, but that was more out of necessity than it was a deliberate investment move.  

Deliberate consideration, gather data, apply your best efforts and then go and make a LOT of money!

Without more information its hard to say exactly the situation here.I do get the feeling that HOAs do sometimes foreclose hoping someone will pay them off.I've also heard of folks deliberately buying at an HOA or second mortgage foreclosure even knowing there's no equity and they're buying "nothing."  

I'd pull back a little earth from the foundation--make a tiny trench kind of thing, and sprinkle DE liberally all around the foundation.