If the HOA required you to obtain their approval, did you hire an attorney? 

The DSCR product is a non-QM loan and will not be sold on the secondary market to Freddie or Fannie, so there are lenders that may will not require a seasoning period. 

This affords the opportunity for a homeowner to sell the property if it is not under water for market value and pay off the loan before they are foreclosed upon, or more commonly, short sale the property with the bank's approval. 

What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.?

Is this really going to get us dead in the water?

Assuming a required rate of return of 5% (comparable to high-yield savings or a CD), the deal would need to yield a total CoC return of 10% (since everything is split 50/50).I'm stuck because while playing around with numbers, achieving this return seems improbable if not unrealistic.

I guess I’d like to learn more about investing in bigger commercial deals….. what are the requirements?

The $78k value per unit and total value of $780,000 are well over many lenders' minimum requirements. 

Your costs you might not think of are insurance, water, sewer.

This is especially true if the property requires significant upkeep or if the heirs live far away.Owners of Distressed PropertiesSellers who own homes in poor condition and can't afford the necessary repairs may prefer to sell as-is rather than invest time and money into renovations.Landlords with Problematic TenantsLandlords who have been dealing with problematic tenants, frequent vacancies, or costly property damage might want to offload the property quickly to cut their losses and avoid further hassles.Owners Facing Major Life ChangesSignificant life changes, such as health issues, retirement, or downsizing, can motivate people to sell their property quickly.