Your total nut must be around at least 1000/month given the size of your mortgage and you're only renting for 1250 - that's a pretty thin margin (maybe breaking even after expenses), especially if you are going to be out of country soon and have less control.I would consider selling the condo just to avert the risk it is presenting.OTOH, if you couldn't sell it within the year, you might consider paying it down a certain amount - not completely, and refinancing with monthly payment that is more favorable to your cash flow and overall risk.

But if its commercial, all bets are off.

I'd bet the "They bought the call option that is now worthless" and "Too freaking bad" approaches taken by investors engaging in deals like this is why that law exists.I'd bet if you said to these buyers "you bought a call option that's now worthless" that they would look at you with the deer in the headlights look.Having said all of that you likely shouldn't have sold them an option to start with because the investment is not suitable for unsophisticated buyers.

This means it is shared loss/gain proposition and you assume potential liability for any losses including legal issues that may arise.Essentially, your betting that your operating partner has the skill and experience to find, rehab, and manage the property.

If they are stock sizes, it might be more cost effective in the long term to replace completetly; but that depends on how the windows tie into your existing building skin.

I think my best bet is to go retail here.

If they do have Earthquake Insurance that could easily increase the Dues another $50-$100 per unit depending on the size of the HOA.

Many apartment complexes in my area divide the total water bill each month and distribute it to the units evenly, and maybe based on unit size as well.

I think you're going to have a very hard time finding any bank willing to do a purchase loan based off the appraisal value.Not unless you have a ton of money in the bank.I have a friend that is buying some condo units cash and his local bank told him they would refi them up to 80% LTV with NO seasoning.Now he also has over 500k in the bank too so its pretty easy for them to have a comfort level.You're best bet to tie up as little money as possible isto buy with hard money and then refi rate and term after 6 months.

Use larger size downspouts at least.