Generally, under a land contract legal title is still held by the original seller of the property and is not conveyed to you as the buyer until the underlying debt it paid off. 

They are looking to approve a NET payoff of 86% AFTER commissions, legal fees, conveyance taxes, payoffs to junior lienholder, seller relocation incentives etc....So lets say average costs of sale are usually 7-8% in most states.

How did you convey? 

I'd rather have an 80% LTV 30yr fixed conventional than a 50% LTV HML or toxic neg am, commercial, private or seller-financing not conveyed to you properly.Reserves, in general I carry 3 months debt service plus estimated repairs and cap ex for the year. 

Then the most important thing to me is proper conveyance. 

@Tommy Mckeown as an agent, I believe he was trying to convey the message that FHA offers will not be nearly as competitve nor frequently accepted, compared to strong conventional or cash offers.

This will be long-winded, but I want to convey that there is a lesson to be learned here: what transpired could have been prevented with better questions from me and better communication from a property manager and plumbing contractor. - The plumbing in these buildings is very old - For every big piece of renovation I have been doing in the unit, I notified the property manager via email and asked if there would be any objections because I know that HOAs can be difficult to deal with. - PM gave me the OK to schedule my own plumber (reputable, licensed, insured) to perform work on my unit. - My plumber notices that many common area shut off valves are seized and almost all shut off valves in my unit are seized. - After testing the shut off valves in the basement storage room, one of the hot water valves started leaking.

If you are looking at historical financials for a property you should be able to see a line item that somehow conveys property management.

The reversion statute does provide for a longer, twenty year reversion period from the date of the deed, but only “by affirmative statement contained in the record of conveyance.”

First, well done on conveying the situation.