Walking the unit now, and me seeing damage might cause frustration on my end, and lead to an emotional reaction. 

So I try to be a little more open-minded and dig a little deeper. 

If your partner does anything that he/she could be liable for and it can in any way be tied to the partnership, if you have the deeper pockets you will be the one sued.You are not really saving much by not forming an LLC. 

The economies of scale to that apartment building would give you much more time to look for other possible apartment deals to scale that way.It's called "Creative Financing" for a reason, and I'm sure there are many awesome posts on BP that dive deeper into this subject :)Best of luck!

Do not give up if your 1st deal is not very good for you and do not let your emotion make an important decision. 

That will give you a good base understanding of most finance you need to know.For a deeper  understanding, the textbook: Real Estate Principles, a value approach by David Ling.

I'll have to talk to the agent about it and dig deeper.

This is far too personal, too emotional, and too apologetic. 

A lot of emotion gets involved and the HOA wants the people out.Depending on the property condition, the HOA could foreclose then rent out the place until the bank can get around to foreclosing.I have assisted quite a few HOAs in the past who have foreclosed not having a complete understanding from their attorney about what happens to the 1st mortgage.

Keep learning and take a deeper dive on subject that resonates with you. :)