(and probably @Joe Splitrock and @Levi T.) won't rent to them.

Are there fines for maintenance levied by the city?

Oceanfront, pool, elevator if over one floor.When calculating BTCF, make sure it includes the HOA fees and any assessments that have been levied against the unit.As for financing, these residential investments can be a hit or miss.  

Most of us self manage @Levi Koskan.

This is a rather broad question which may be covered by respective statutes, however is there a maximum interest rate/penalty levied for tax lien redemption?

This is not a do-it-yourself project, as your state may levy some very serious penalties if what you're doing falls into the purview of consumer lending laws.

If you are looking to do a single deal, I would have a good understanding with your potential partners as to what your budget is for acquisition and reno costs, and like Levi T. said, find the deal first, and then set forth specific terms pertaining to that transaction in an operating agreement. 

They fought back and the judge ruled that the max fine the HOA could levy was $500, as a one-time fine.

If Lessee defaults in the payment of any payment due under the terms of this Agreement, or defaults in any other obligation contained herein, or if such property or any part thereof is seized or levied upon or attempted to be seized or levied upon under any legal process issued against Lessee, or if a debtor's relief proceeding or a bankruptcy, receivership, or insolvency shall be instituted or filed by or against Lessee, or if Lessee shall enter into any arrangement or composition with creditors, this will be considered a breach of this Lease Agreement, which shall automatically terminate it.

Do we pay an excise tax in Washington state on sub to deal?