The only way I would consider property in an HOA would be if it had a solvent association located around an attraction like a ski mountain or a beach and I was getting a really good deal and knew I’d be able to make money on it as a STR.

Without getting too deep that's much different than an insurance contract.Agreed, and you also have to hope the attorney is alive when the problem arises and (s)he's solvent and able to pay a damage award.

So, for example, the once solvent tenant who is now unemployed with minimal prospects can get a HUD certificate that would pay the Landlords a portion of rent (not a huge money-making portion but an amount that would help them meet their expenses).  

@Corinne Faivre if you sell, sounds like it may have to be a cash sale if the HOA is not solvent or has lawsuits, no lender will finance.

With rates historically low between '12-'22, that wasn't a terrible idea but not a solvent one.

It's not a solvent long-term business model, imo.

@Peter MorganIf it's a two-year-old plumbing line, it's made of solvent-welded thick inert plastic PVC or ABS plastic.

Heritage stayed solvent.  

The two  multifamily deals I am in are having a cash crunch from their bridge debt due to rates, and will need to raise funds to remain solvent if and when they get fixed debt.

Businesses will close and county and cities will need to up taxes for remaining businesses to try and keep the government solvent.