Whether the leak and mold is the HOA's or seller's responsibility depends on a few factors and documents, most specifically the CC&R's, but the CC&R's are difficult to read and understand for most agents and non-attorneys. 

Has anyone done this before if so can you tell details on how it worked, how much your profits were, what is the risk factor, and how long did it take.

I can tell you that with the bigger pockets calculators  "other income" doesn't factor into the equation when calculating property management fees based on a percentage of monthly income, and I would imagine this would be the standard in the property management world. 

I've been looking at areas with lower costs of living, among other factors. 

I have software that analyzes deals for me since I get so many, I just add the "fudge factor", unknowns, there is a calculation for that most just throw out numbers lol.

Does the difference of the loan's face value and the discount amount they pay not factor in (i.e. loan amt $170k they pay $136k and they get $34k in additional profit once the loan is repaid in full?)

I target markets and assets that have these two major factors: 1.

If money is the motivating factor I strongly suggest you do plenty of homework before you actually make the move.

The mortgage would cost you almost twice rents, then factor in vacancy/repair/capex reserves and you are majorly negative cash flow assuming you are financing with a typical down payment.

@Aaron KlattI am factoring more then enough time into the lease option to comfortably reach the needed credit worthiness to use traditional financing to complete the purchase and repay the initial capital lender