If you never buy a property and get audited your auditor may see it a different way but hard to dispute if you do purchase a property in the near future that's how it was explained to me but please take this with a grain of salt as I am no Accountant.   

He also said she keeps the late fees as well, but she disputed this. 

Could a condo association dispute or block a private transfer, or could this effect her status on title? 

In terms of reserves, that would only be if they set a reserve on your account and this only would happen if you are giving a lot of refunds, disputes, etc.

My new year resolution is to buy at least one investment property this year.

I can't dispute your numbers.

I'm currently in a financial dispute with contractor which is even less fun.

May i ask what resolution you ended with?

Boundary and easement disputes are two off the top of my head.There's a neighborhood in Central Texas, in Georgetown, who just had a lawsuit filed by someone with, what appears to be a legitimate claim, to the land the neighborhood was developed on.

My rental management experience is really limited to my rentals owned from time to time, then jumping up to the overall management oversight of a large public housing authority, 1,200+ units, 3 highrises and 1,000s of Sec 8 issues as a commissioner.Even at that, you had to deal with tenants many of whom had issues, one on one, mostly settling disputes and then the corporate structure within government.