If the contractor countersues, wins big, and all the homeowners end up with huge assessments, you may end up in a position of not being able to repay the loan and they don't want unhealthy collateral they will have trouble selling.  

It can create a unhealthy landlord tenant relationship for hobby landlords.

How does buying a distressed home for under market value, renovating that home and then selling it at market value demonstrate to you an unhealthy market? 

However, in this case, the upstairs' occupants have created an unhealthy condition that will be ongoing if not remedieda and this requires the HOA to intervene. 

That in my opinion helps keep the CR markets healthy as opposed to aggressive lenders willing to write unhealthy loans on speculated properties.  

The unit upstairs to one of my rentals is owned by a woman, who lives there in unhealthy condition.

Believe me, all you need to know is the laws, your market, and a simple how to  dot dot dot [enter your niche here].You are never ready, and I am STILL not ready.You just need to be confident , have an unhealthy ego, as long as you can keep it in check.. so I fail there miserably, go out, be you, be a force to be reckoned with.

Some areas are looking at price drops seehttp://www.inman.com/2014/05/12/home-price-growth-cools-but-unsustainable-and-unhealthy-in-some-large-markets/#.U4ZCrijijy4Affordability - credit at 43% DTI is an issue for many buyers.http://www.homebuyinginstitute.com/news/fha-debt-to-income-296/Your business plan:Look at A and B neighborhoods.Market towholesalers that have leads with no equity in A and B neighborhoods.listed houses, expireds, landlords, fsbos, and houses purchased at the top of the market (2006 - 2008) for low equity.Offer lease option assignments, sub2 purchase or wrap purchase, use a RMLO and a good lawyer.Market for Owner financing buyers.Give speeches to Rotary, Lions, Chamber, etc. about solving problems for young families' housingPost cards to apartment buildings and rentalsWrite blogs about rent to own, credit being tight, etc.Create a meet up group for "Get Your Lease 2 Own Home Now"BOTTOM LINE.SOLVE PROBLEMS FOR SELLERS AND BUYERS.

Hi Natalie - It's a tough situation - the housing market is unhealthy here in my opinion and equally tough for renters and buyers. 

The answer is that I think it's not unhealthy or abnormal to go through a single-minded focus on your goal, it wanes a little bit.