This is an interesting question for sure and yes I’d agree that the real answer may reside with the local city council and may be different depending on the state and associated zoning regulations in place.

Find out if there are any special assessments currently levied, or if they anticipate any soon, whether or not there are any lawsuits within the association and of course whether or not they even allow short term rentals because some don't.

It's not worth the risks associated with doing it "their way." 

I'd love to see someone prove that an earnest money deposit is required in any state to create an enforceable contract for real estate.I'm not saying it isn't possible, just that I want to see the proof.In your response please don't refer to your local REALTOR association contract form.

Nor the steep penalties associated with willful negligence.OP will want to consult an attorney and a tax CPA familiar with international tax obligations, tax treaties, and entity structuring.A multi-member LLC taxed as a partnership to hold the real estate asset might be the best way to go considering there will be a mix of US persons and non-resident aliens. 

On top of that, the condo association (very small, 6 units only) is a disaster and is nearly bankrupt, the shared space (i.e. yard, parking lot) are in terrible shape, and the current association officers won't take steps to collect against past due association fee owners. 

This way, I don't touch the original funds at all, and I can't touch the payback funds until all debt payments associated with it have been paid.This is a proactive, risk control.Now this is just a 30,000 ft view of how I do it, details and other aspects of this system not mentioned here, but this overview of it should give you at least an idea of how you can handle it at your end....and what @Jay Hinrichs just wrote

Realtor is a member of professional association made up of agents, brokers, sometimes ancillary members including lenders, lawyers.

Texas Home Sales & Prices Continue To Rise AUSTIN (Texas Association of Realtors) – Texas home sales and median prices continued to rise in second quarter 2018, according to a report from the Texas Association of Realtors.

We had a small fire in the common area of our association that caused damage to all six units.Some owners decided to take advantage of the situation and add on minor renovations to the repairs.The insurance company (Erie Insurance) recommended that we hire (Perfection Restoration).