Con - lose any possible property appreciation over the next two years.

How can I lose???

Be prepared to lose that $80k if you don’t do an in state live in flip.

I want to stop being pennywise pound foolish and get things set up properly. 

It's real estate in markets with population growth, it's pretty hard to lose money if you get an inspection and appraisal.

You're going to lose your loan from what I understand.

Have you ever heard of a Landlord being sued by a Tenant and losing property?

So all of the gain and depreciation recapture are initially still tax deferred.However, like Joe said, the down side is later when sold  you lose the 1031 option. the client will pay tax on all gain and depreciation recaptured from before the 1031 also. 

(End)Unfortunately, HOAs are often ran by individuals who are not the most knowledgeable on regulations, accounting practices, and more - and property managers do not want to intervene for fear of losing the contract. 

Their families will really enjoy since these are $8 per pound and the minimum wage in Belize is $5.