I foresee one potential issue with this strategy but I'll also give your a solution to it.The issue I see is that a lot of conventional financing, if that is what you use on the rentals, requires 6-12 months of rent seasoning before they will count the rent as income.  

There is cold weather coming up to Christmas, and wanted advice on how to avoid disaster while they are away and no one is monitoring in case a pipe freezes/burst while no one is there.

Increase monitoring of the property.

That said, in most cases (and based off what you've described above), this was damage to a common area of the association, and thus the Condo Association should be responsible for providing a solution in a very timely manner. 

You may even present this as a headcount to them (ie, say “85 people including women, children, and the elderly will be displaced as a result of the measures the county is taking”)Lastly, as we look at creative solutions- maybe ask residents to write letters and even make visits to the county offices responsible.  

Develop a list of solutions for potential sellers.  

In order to qualify at many banks on the jumbo/DCR loans, your cashflow needs to be close to a 1.0, (Cashflow = PITI).I think it'd be best to explore the 5.5% option that bank gave you as that is a great rate for a loan like this.Hope this helps and you find a solution! 

I knew this was a long-shot but I am determined to find a solution for my client.

@Clay W. are you referring to FortuneBuilder's solution or the Realeflow's Hammerpoint rehab estimator functionality?

Don't get me wrong; there are plenty of issues/problems/quirks that old houses have that new houses don't, and an old house can obviously have hidden problems and big repair/maintenance bills too--which is why thorough due diligence is fundamental to REI...but, the point is: a brand new house is not a foolproof solution to repairs/maintenance headaches (and in some cases, a brand new house can be a much bigger gamble than an older house).This is a particularly important lesson for inexperienced investors, who tend to be the most prone to "shiny object syndrome" (the tendency to let nice aesthetics distract from real, underlying issues).