I suppose if the property appraises well and you can show the costs incurred you will will receive favorable financing at time of purchase and recieve your return of capital through the same financing process.

It might look amazing in a couple of years.Thank you for the encouragement I don’t recall the last time I was this stressed about rental purchase, that’s what I keep tell myself that number works, even if it under perform, it should still work in my favor, I think it’s the unexpected siding issue throws me off and makes me think about all the negative things about this dealalso number is larger than i normal target range (70-150k) small 2-3bed rental 7.625% interest rate probably pressures me a bit too 

It is true, a lender will not look favorably at a scenario where the borrower is relying on a loan for the down payment.

If they come out against my favor, can I coax the board HOA to at least talk to the actual attorneys who are experts in condominium law?

@Nicholas Devlin There's a few lenders that can do loans that small but the terms may not be as favorable.

If you need the money urgently you could consider a heloc which may have a more favorable rate. 

Would building a fourplex from scratch yield favorable returns when evaluated against existing property options?

To get it at short sale, the seller going through the foreclosure would have to be convinced it is the more favorable option pretty soon and choose to sell at a lose than risk the consequences of foreclosure.

Do yourself a favor and turn over the portfolio to a trusted PMC.  

I moved from NorCal to live and invest in Reno, NV because I still wanted to be close to the Bay Area but wanted to have much more favorable landlord/tenant laws, low property taxes (that don't reassess on the sale), consistent diversified job growth, and land constraints for higher appreciation.