Reserve at least one for your local area, to keep up with conversations and connect with investors in your area.

You're confirming what I've suspected but mostly you're giving me a good basis for an offering price (keeping purchase, repairs, costs) less than 75% LTV.

Total profit: $565K, based on an out-of-pocket of $274KI’m well aware of the dangers of doing a leading project like this, before something else similar has confirmed the viability.

Check with a local RE attorney to confirm.  

But will make or break your FHA deal with a 3-4 unit......Reserve Requirements 3-4 Unit owner occupied properties must have 3 months PITIThree (3)- and Four (4)-Unit Property The maximum mortgage amount for the three (3) - and four (4)-unit properties is limited, so that the ratio of the monthly mortgage payment, divided by the monthly net rental income does not exceed 100%, regardless of the occupancy status.

Reserve requirements and debt service coverage are also things you want to look into as if the numbers don't make sense from a debt service coverage requirement perspective, why the headache?

Don't assume that techniques used to deceive the public are only reserved for lenders.  

Even so, I'm in this thing for only $25k, and I've certainly done sillier things with $25k, and plus now I'm not paying rent and am now getting landlording experience on a cashflowing property in Southern California (though I know a lot of that cashflow will go toward maintenance...I'm not spending or investing any of the cashflow...keeping it all in reserve...who knows what the rains will bring with them?).  

generally the older the properties the higher the fees due to the cost of maintenance rising property taxes etc Fees also increase over the years but they should be matched to a well kept property as @Nick Britton said read over all the condo docs and especially the budget paying attention to reserves,expenses etc .I have lived in the Palm Springs area for a number of years and have see condi fees as high as $1000 per month on some of the older properties.If you a re looking at a investment in this area it has a host of problems as you noticed,rising fees is a big one.

Since the owner has the sign of rent to own , I would like to hear what is the best strategy for me . the primary resident house will be funded by my spouse and it does not affect my reserve for other properties investment .