They are farily easy and do nto require much to get started and the Max LTV is going to be 75% but I have seen some exceptions to 80%.Rates are subject to a few thing like loan amount, property type, number of units, credit score and downpayment.DSCR allows you to purchase with No employment and No tax returns so its a little easier. 

I give these threats no thought because 1) my actions are appropriate 2) i document well 3) they have yet to follow through with any of these lawsuits 4) typically their ignorance is apparent in what they are threatening to sue for. 

there are ways to get around the highest and you also need to take into account the savings you will generally have on the purchase side when compared to other regions. 

Purchase price: $232,000 Cash invested: $18,000 My real estate investment journey began with a leap of faith when I purchased my first investment property—a charming but very needy fixer-upper in Connecticut.

So it was 153k for the purchase and 40k for the rehab, I had to come up with the rest. 

I have never seen any financial statements or documents or 3rd party audits etc.  

It couldn't hurt to call a couple attorneys right away to see what they say in terms of cost and suggestions for dealing with this quickly.In terms of mitigating any legal issues with your tenant be sure you are documenting every conversation you have had with the HOA in terms of asking them to make the necessary repairs.

Additionally, most servicers will provide the tax documents needed at end of year (1099-INT, 1098-INT) and can also issue notices of NSF, late payments and support delinquency /default.

What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.?

@Matt Weddon, I try not to even think about those types of things UNLESS there is objective documentation or they admit to doing something specific.