I am doing a 24 lot one now and we have been in negotiations with Engineering for 8 months prior to submittal but I know they will hit us with extensive red lines.. its just the nature of the business.

As a real estate rookie, you’re going to have a lot of people appealing to your good nature and looking for second chances.

I will say that the Texas Real Estate Commission takes violations of this nature very seriously; penalties include fines and possible jail time.  

I think people like closets but if you do not have a bath or at least a toilet on each floor - it means running up/down every time nature calls - for some people this will be a hardship - others a nuisance so I think you do not want to get rid of this.

In this case it seems the board did not plan well major improvement cost and payments or even maintenance and so now they are raising the HOA cost per unit to raise the needed money but how does one prove the factual nature and scheduling of needed repairs, improvements or maintenance issues?

I'm not sure we have time to create an LLC with all 3 of us, or maybe we do so that we can show articles of incorporation with the offer?

That's what probate makes possible.All your other points are possible and no different than any other distress sale by a living, natural person.

CapEx is to maintain or restore the original quality and nature of the property.What you are talking about is Capital Improvements - so assuming that your property has no deferred maintenance or life/safety issues, then the best way to determine what improvements to make is to go visit and tour the property that has the highest rent in your market and compare that to your.

There other costs for marketing and signs and things of that nature.  

that would help me get in idea of all the areas to incorporate into the agreement.