There are also no headaches associated with these as they are 100% passive in nature.

In the case of a condo where the association pays for certain things like water, then you would advertise "no water" when you market the property.Paying for utilities will kill your profit margins and if tenants don't have to pay for utilities they will DEFINITELY run up the bill. 

Then their is our blog, facebook posts, radio advertisements, associations and on and on and on. 

I talked to the HOA, they said in an email: "The Association will hold the homeowner responsible in accordance with the Maryland Condominium Act".Am I responsible for the damages?

It best to just have a condition in the AP&S that states something to the affect that the Seller will cooperate with the buyer to obtain a building permit and work with the buyer pertaining any documents involving the committee and CityNot a bad idea to also have a clause in the contract allowing your surveyor access onto the property as you will likely need a topo survey to start building plans

The borrower and the foreclosing entity (Ok, all of their affiliates, associates, vendors, etc. know but you get my point).

Maybe some liability risk avoidance but you can mitigate that with an umbrella policy (which you should have anyway).On the flip side, if this is in your personal name you can avoid capital gains taxes, get more favorable mortgage terms, and avoid the added transaction costs associated with the transfer.

Overall, the complexity associated with assuming ownership of 1/6th of an existing partnership seems quite high (unless the LLC bylaws already provide a mechanism for transferral of ownership)?

Were there any closing costs/fees associated with this flip?

One of the best places to build a wide knowledge base is through joining Arizona Real Estate Investors Association.