I agree with Dominic, I would price it according to the market and CHA will make the adjustments on their end.

The real estate investing industry uses "Classes" to rank property performance risk, but there's NO agreed upon industry model:(Here's what we use for our Metro Detroit market:Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

I overall agree that right now most real estate doesn't make sense for a hobby investor.

As a result, Realtors and the NAR are doing whatever they can to keep the cooperative commission system that doesn't ask the buyer to discuss and agree that their agent is worth 2.5% of the sales price.

I would have to agree with this - appraisals are no exemption to the general inflation/rising costs of the past few year s- $750 is hardly outrageous and investing in non-warrantable condos and with HOA restrictions is always going to have a risk for hiccups

Agreed on spending money, I would be asking the owner to purchase all of the smart locks himself as an investment into the property. 

@Dan GroveAs a private money lender I agree with Nicholas' sentiment.

That means you'll probably have to take on riskier borrowers or agree to riskier terms.My advice - If you don't have boots on the ground here in the states (that you can rely on), or someone you know you can trust to borrow this money then I wouldn't risk it.

She is now in arrears 3 months and has agreed to deed the land back to me and take a Promissory Note for the balance 30K. 

I agree with Jorge-can you do better than 7% with your money?