Looking for legal consultation on how to handle in a way that is sensitive to both HOA and my needs as a homeowner.

Forward looking projections are always a risk gamble so putting weight on it too much can be potentially problematic.What to consider in splits, fees hurdles is who (what parties) has what at risk when you run a Stress Test / Sensitivity Analysis.

You have alot of sensitivity to expenses on smaller properties, which can significantly shift your NOI numbers.

I am more sensitive to being called a slumlord. 

Being able to talk to them about how their money will be safeguarded and all the steps taken to make sure everything is above board will go a long way to getting people to trust you with their capital. 

The property manager is legally required to safeguard personal information about the prospective resident. 

You can do a DSCR cash-out at 90 days.Since you seem rate sensitive, you could do a delayed financing cash-out for conventional since you are occupying the loan.

Finally if it looks good then its time to model out the cash flows over the life of the project and apply either a NPV and IRR/MIRR to the deal.Once I have the model, then I like to see what proportion of returns come from cash flow, appreciation, tax savings, and debt pay down to get a sense of how sensitive the asset is to changes in assumptions. 

One put on his application that he is highly sensitive to mold as a note for the landlord. 

What areas of the lease should we focus on to safeguard ourselves?