Hi @Matt BrowningNo repairs were needed at the time of purchase, but some items were very outdated (house built in 1996 - contemporary southwest style - think brass everything and faded pinks, off white ceramics, and oranges).

Large enough to handle the worse-case scenario (many missed payments, major damages) and still turn a profit. 10% would be the bare minimum. 

Option A and B are likely initially cash flow negative when you include vacancy, maintenance, Cap ex, miscellaneous. 

The decision was based on 1) what debt service ratio we could achieve on my income alone, which we felt was safer, and also 2) we felt that having higher cash flow (not very high, just not negative or barely positive) was the wiser choice since we intend to hold long term.

I suspect the RE prices to have barely moved. 

Wayne or anything, but I doubt the appreciation run up in the last two years can accommodate for the increase in list price over the last close price barely a year ago. 

That said, a lot of HOA bylaws and covenants are pretty bare-bones and it wouldn't be difficult to meet the basic letter of what's there without providing you any relief whatsoever.

With the economy spiraling, most people faced financial doom as the properties they purchased via mortgages had the value of their homes reduced significantly.Although the US Government finally stepped up to prevent further damage, the housing market bared most of the negatives associated with this Recession.How will a Recession now, affect the Housing Market?

The walls were bare when we purchased and we did put some art on the walls, but room for more, I agree. 

That's about the bare minimum cost to do a real estate deal these days.