Let's cut to the chase:  "A tenant is obligated to follow HOA rules, as they are considered residents of the community and must abide by the same restrictions as homeowners, even though they do not own the property; the landlord is responsible for ensuring their tenants understand and comply with the HOA rules. 

Therefore, any strategic/investing where you have a solid plan to get most/all of your capital back would be my target for this type of capital.

Obviously, two factors are responsible for what will likely be more than doubling our money in 3 years.  1.

If you do decide to help them out and rent continues to be late simply have a talk wiht them and remind them that rent helps pay your bills and since you did them a solid ask for the same in return.  

I have the same dilemma and can't find a rock solid tool without spending 100's of hours building mine...much appreciated.

.- I notice that often responses have a @namehere link.

Really only makes sense as @Chris Seveney mentioned if you have a solid, long term relationship with the seller and you are doing a very high volume rehabs

Regardless if you invest in state or out of state find yourself a solid agent who knows what they are talking about.

Quote from @Josh Bowser: Gang - I love the back in forth on this thread and looks like this post keeps getting responses!

I like umbrella because there is no worry of being pierced for inadequate separation of finances, if sued you have a heavy weight in your corner who has all the consequences of a defeat, and because usually it is reasonably priced (mine today is not so reasonably priced but I believe it is mostly related to the risks of CA).I do understand that the probability of needing the umbrella policy is low.