Between HUD and the management company i have spent about a month escalating the issue and filing appeals with no resolution.  

Yes...making a down payment obviously is going to get you a better cash flow, no one is disputing that.

The evening after payment processing, he cancelled the account, then filed a dispute for fraudulent charges to his credit card company the following day, without notifying REIPro.

It is a bit hard to explain and defend how you honestly found mold everywhere and then how you honestly did not believe the house has a mold problem that needs to be disclosed as the seller.If there is a dispute about anything and more so if the dispute concerns mold then talking out of both sides of your mouth is not going to put you in a good position.Do assume that lenders deal with many properties.

I say all the time to just about anyone that will listen, to set 12 goals each year (1 a month), rather than New Years Resolutions.

Also, the state of formation is likely where internal disputes would be brought among LLC members, so if you and a partner live in CA, you probably want to arbitrate in CA if the two of you had a disagreement.

Why do people think a landlord is some kind of authority figure to bring disputes to? 

Which by the way isn't usually applied to the disputed amount, but the WHOLE amount.  

That has been our only resolution thus far.

Sometimes the heir spill the beans and tell you all about the family dirty laundry and any disputes about selling etc.