**Please note I am not an attorney or CPA, but have been around the block and have set up these structures only to turn around close them because they made no sense.

Bank foreclosures are common. 

As buildings of this sort become common, what will happen to the demand for traditionally-constructed housing?

I am personally happy with my decision as I made more money with real estate than if I left it in the 401k / IRA.If you can make a higher return in real estate than in the stock market, I think it makes sense and the added return will pay for the penalty paid now.

After reviewing the other link, that makes more sense now because the small area fair market rent is $1280 which is much closer to the average rent in my area.

It was very common from the mid-90's until the mid naughties. 

That makes more sense. 

If you’re trying to eliminate a PMI payment or something, then it makes sense, but read your loan docs as that’s harder to do than you expect.

The deal still makes sense even after factoring in a 60% increase to the HOA fee.

I assume that as long as the mortgage is kept current, the lender will not be an issue.I sense that since I already have the LLC, why not move the property under the LLC's ownership...?