Rehab $ will need further investigation once I can access the house.I would like to do a Subject To on the property, but am confused by the reverse mortgage aspect of this deal.  

Preliminary numbers look good.

However, when the title company did preliminary title search, they uncovered an unrecorded easement that provides ingress and egress to the property.

As Jessica above me wrote, 'as-is' doesn't mean that you don't get to investigate the condition of the property.

Investigate the company.

I requested the association to send plumber to investigate all units.

That is just an example, the program this property is under might be completely different and for a different purpose.You want to investigate because if you buy it you may not be eligible for that tax break and depending on the program there may even be a cost to remove it from the program.

A title company will be able to give you a preliminary HUD to review all closing costs. 

To find out if a place has these laws, talk to a local investment team.The metro areas that remain are the ones to investigate further.The next step is to select a tenant segment that has a high concentration of reliable tenants.

Lots of ways to go here, but if your goal is to start investig in real estate and grow your portfolio - get the HELOC, use the equity and buy more property.