I also had horrific PMs, particularly involved with a 48 unit apartment complex in Houston.  

Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers.

Nothing illegal about doing that, but if caught, the lender may call the loan due and if you don't correct the situation or pay the loan off, they willstart mortgage foreclosure.3) You could also go the HELOC route to tap the equity in the home, but the 12-month owner-occupancy will also apply AND the interest rate on the HELOC will fluctuate with the Fed Fund Rate.4) You could do a cashout refi as an investment property, but that will be at an interest rate 0.5-1% higher than owner-occupied rate.Suggest you meet with 2-3 lenders to explore your options about the above.Once you have access to funds, recommend you buy a 2-4 unit with 20-25% down. - You can buy owner-occupied, live in one unit, and fix up and rent the other unit(s).- If you're handy, recommend buying a property in the worst condition you can tolerate.

The principles of diversification apply to both!

When investing in high cash-flow markets, I always recommend working with an investor friendly agent so you're able to gain the right insight on the different areas and the risks involved.

They tell you right at the start in which states you can apply this freely, which states have certain restrictions and which states you cannot do this without a license. 

I was not involved in contracts, funds, etc. 

I am confident price is your issue especially if you are deriving the price off a poor comp (smaller unit, etc) and then applying arbitrary adjustments.  

Enclosed a few pics for your reference.Should I involve the HOA?

I was never involved with the selection process.