I feel for the injured homeowner, but I don't think it's unreasonable for the Association to wait for legal action by the member before they get their insurance involved.

I could keep them but now they each need some serious upgrading to keep the rental  income at current levels.There is much more to real estate information than simply buying with nothing or near nothing down and unreasonable spreadsheet projections.  

I'm not sure you are considering factors such as, off the top of my head: 1) unlike the have-a-pulse-get-a-loan scenarios of yesterday, they are required to have proper debt-to-income ratios and meet reserve requirements so as long as they don't lose their job for an extended period, they've proven they can afford the payment; 2) even in a down market, they will have to live somewhere, so unless rents are much cheaper, which is unlikely, it makes more sense to not ruin their credit, keep paying and stay where they are, especially if they've improved the property at all; 3) these loans are much more likely to be 30-year-fixed, not the ARMs of yesterday that adjusted up to a surprisingly unreasonable payment (many didn't understand what they signed up for until, Wham, the payment doubled on them, so they had to walk); 4) they pay MIP, upfront and monthly, so there is some protection for the lender if they do default.Many of these people would be stuck paying much higher rents, building others' equity instead of building their own, without FHA loans.  

As I meet more and more people in this area, I'm finding good amount of people were from the bay area, like me, realized housing prices were just unreasonable and moved up here.   

You can't foresee the unreasonable. 

CapEx reserves were established when purchased and it's unreasonable to continue to withhold them month/month.

Trends usually don't just end over night (barring some major event) so the data says there are probably 2 years and it would not be unreasonable to assume 3 years of at least some form of positive price movement on the sales side.

Understand that weasel clauses just reflect their intent and they deal from a position of no commitment with who they deal  with. 7. they have no understanding of valuation of professional (I use that term very loosely) services attempting to get what ever they can that is most often unreasonable. 8.

I'd say you're better served thinking about current return on investment rather than "cash flow" per door.If you start with an assumption of what income you need in order to live, and peg how much capital you have to invest, you can figure out what annual percent your investments need to throw off in free cash flow to meet your living needs.If that percent is unreasonably high, it means you either...

Welcome to BP @DB Bailin  Those terms are perhaps a little high but if it is your first deal that is not unreasonable.