Keep accurate records and then you can show these to new lenders.Even with the loans you will want to have an attorney prepare the documents.  

I do understand that due diligence is the only way to gather the info I need to assess this deal. 

Scott The Book on Flipping Houses,The Book on Estimating ReHab Costshttp://www.biggerpockets.com/flippingbookLocate and attend 3 different local REIA club meetings great place to meet people gather resources and info.

I think the key here is, if your numbers are accurate, you have multiple, workable, exit strategies. 

Scott The Book on Flipping Houses,The Book on Estimating ReHab Costshttp://www.biggerpockets.com/flippingbookLocate and attend 3 different local REIA club meetings great place to meet people gather resources and info.

Of course the HOA rules state that they do not have to give a reason for a refusal, is this legally accurate?

From what I have gathered it depends on if the transaction is all cash or a mortgage is being used but I could be wrong? 

Zillow isn't always accurate, so it's possible that he's doing something shady but unlikely.  

I've been thinking about getting my RE license as well and from what I've gathered on BP it depends on the broker you hang your license with.  

Scott The Book on Flipping Houses,The Book on Estimating ReHab Costshttp://www.biggerpockets.com/flippingbookLocate and attend 3 different local REIA club meetings great place to meet people gather resources and info.