The reasoning that was shared is that there is not currently any means to have the renter enter into an agreement with the HOA and there would be uncovered liability. 

If you were thinking about purchasing a house like this, and your inspection uncovered these issues, how would you account for it in your offer? 

The investigation may uncover other problems and even cause them to lose their license which would protect other investors.4.

I've made some offers on properties and been under contract a couple times but haven't closed yet due to repair issues uncovered during inspection.So I'm just getting started and I'm building out my property analyzer.  

@Meghan Edgar suggest contacting a commercial agent that specialises in student housing.

If you decide to pursue it please drop an update as to what the situation is when and if you uncover it in the due diligence. 

I know you have $40,500 but does that leave any room for errors/uncovered items/time delays?

Is there a form letter people use to send out say here is the itemized damage charges and a bill for the uncovered amount?

I assume the question is trying to uncover if I am downgrading because of financial issues?

Glad all this is getting uncovered!