But part of this game is following the Pareto Principle and building in a margin of safety for the big-ticket items. 

I recommend starting off by defining what class of neighborhood fits your investment objectives and comfort level.

What is the objective?

Find out what each person brings and objectively analyze that strength.

@Brook RiemanMy bad.Like @Jack Bobeck mentioned, the initial interest and principle will be spread like a regular 30 year note.The remainder of principle will be due at year 5.

If I zero them out or max them, it adjusts the my expenses and the metric.Depreciation/tax and principle pay down are not in the equations.  

That would seem to be the easiest, cheapest fix to this.Or, if the buyer/agent objected to the specific wording in the letter (perhaps because it did not cover the issue sufficiently) ask the HOA to rewrite it.

You might want to come up with a list of objections for yourself that you can practice the answer to.

I see no reason why I would not apply the same principle here, except here I like the six month 'probationary period.'

I love that he emphasizes the importance of staying objective when analyzing properties.