This can become a risk for both you and your ability to sell.As for things to talk to HOA about, beyond the permanent exterior colors/finishes, I would also ask about things like dumpsters and potentially port-o-let's that may be needed during rehab.  

Will they lose their ability to deduct bonus depreciation against their regular 9-5 income for all future years?

Welcome to BP - rates have finally come down a bit so that cash flow is now possible again in some markets for classic turnkey rentals but still have a bit of a ways to go - if you have the ability to BRRRR - that is going to likely really be the better strategy to get a more robust cash flow at the start

If you are charging market rent, the rent you will lose for that 1 week of occupancy would afford you the ability to rent a comparable property on the market without the need for any of this kind of nonsense. 

This is a very difficult business with dozens of moving parts that need to be managed and mitigated through expertise and ability.

You can ALWAYS negotiate if both parties want to and with you having the option to back out of the deal you have the ability to leverage the seller into "wanting" to negotiate. 

Early on in this discussion I thought you were just a wide eyed fellow taken in by the ability to enter into a market with little investment.

I have come to find out that every city,county and state have different rules/regulations when it comes to starting group homes.Research your local city zoning ordinance and reach out to your local county human services department for more information.If you have more specific questions you would like to ask feel free to reach out and I'll try to answer to the best of my ability. 

If you set up a "checkbook LLC" for your SDIRA, then I believe (check first with your custodian and/or attorney) that you would be able to invest directly as the manager of your LLC (using the LLC's account), without going through your custodian.On the other hand, that ability to quickly invest can be a double edged sword, since I think the delay can be a good thing (it forces me to think more carefully about the syndication and take the time to make sure it's a good investment for my SDIRA).

I’m guessing due to the bank having the ability to freeze and see the facts, it wasn’t long. that certainly could have been a lot uglier without swift action!