I received a warning from HOA informing me of the violation.

In other areas, HOA agreements limit the number of rental properties in the neighborhood.

Are HOA's typical and how much are they usually?

And yes, as @Randy Bloch and @John Andrews mentioned, regulation from both HOAs and municipalities can throw a wrench into your plans.

HOA of $42 a month.The home has lots of nice upgrades, is located next to a park, and based on the rental numbers I've heard talking to neighbors, it would likely fetch $2,000 to $2,100 a month.

Here are the financials:$275,000 appraisal (I owe $198,000)$1,100 mortgage plus escrow (3.0% interest)$150 HOA monthly$1,000 yearly HOA insurance feeI can only put 7% down on my new home out of pocket and would incur a $275 per month PMI if I do not sell.

We were able to reach one of the HOA board members who helped us turn off the water stack valve, which reduced the flow of water from a downpour to a lighter flow.

What I've seen with condo HOAs is that the HOA fees tend to increase faster than the rent.  

My first few times doing this, I got super negative numbers (no rehab; no HOA; included expenses for garbage, water, gas and electric).

Negative cash flow was assuming a refinance which is not necessarily a plan unless I used up other capital.Currently the expenses on the house are, HOA $62, insurance $25, taxes $83, water $20.