@Jose Castillo I think negotiating with the seller is an option to offer him a lower amount on the property and then he pays off the HOA as a part of the sales transaction.

and if there is a tax loss, would it lower my tax on a 1040?

It will allow you to negotiate better terms (essentially lower %) with them, so you will be able to reduce the property mgmt fee expense indirectly. 

If you are very confident in your estimates, then you may try to recalculate with a lower purchase price.

By the time the option to purchase rolls around, I wouldn't mind putting a mortgage on it at that point.Negotiate a lower purchase price, since it is a distressed property in need of some work and purchase the property now via HML (incl funds to rehab the property).

Keeping tenants in the lower unit is very difficult to achieve.

Investment is about knowing the true value (cost) of what you are buying--calculated based on the expected future return of that property, and then obtaining that property at a relatively lower price. 

If it turns to crap, at least you will have learned some valuable lessons.I’m in a similar situation but I’m looking at lower price ranges, and I am terrified but I’ve doing all the due diligence I possibly can.Good luck to you!

If you moved because of military orders, you still qualify, only with a lower maximum, which should not be a problem.And you're still unclear about the use of the property.

I was going to suggest at your purchase price you might also look into unsecured loans from say Marcus by Goldman Sachs , or if your credit isn't quite good enough for them you can try Lending Club, or loan depot they all do unsecured loans and some will do them with less than perfect credit.Another option is one I'm using now just a construction loan, with a regional bank here.. they are loaning me 60k for a home 30k purchase and 30 for repairs/personal debt.. to lower my debt to income ratio..