The biggest point of failure can sometimes be in action.  

Not long after I posted this I was preparing to get my first deal and then an AC failure in my personal home drained my capitol (shame on me for not having a capex fund for my own property).

@Diane Savoian I understand why credit score is a "go-to" screening factor for tenants by most, but fact is all that is BS, it really is, and actually a setup for failure. 

A member or manager is NOT PERSONALLY LIABLE for a a debt, obligation or liability of the LLC solely by reason of being or acting as a member or manager.(2)The failure of a LLC to observe the usual formalities or requirements relating the exercise of its LLC powers or management of its business is NOT a ground for imposing personal liability on the members or managers for liability of the LLC. [1993 c. 173 section35; 1999 c.86 section 10.]

there is no perfect life as a landlord and no one can be perfect as your relying on a third party that you have almost zero control over for your success or failure  ( the tenant LOL) 

Finally, find out what the actual failure rate.

Many OOS investors set themselves up for failure because they don't truly take the time to understand:1) The Class of the NEIGHBORHOOD they are buying in - which is relative to the overall area.2) The Class of the PROPERTY they are buying - which is relative to the overall area.3) The Class of the TENANT POOL the Neighborhood & Property will attract - which is relative to the overall area.4) The Class of the CONTRACTORS that will work on their Property, given the Neighborhood location - which is relative to the overall area.5) The Class of the PROPERTY MANAGEMENT COMPANIES (PMC) that will manage their Property, given the Neighborhood location and the Tenants it will attract - which is relative to the overall area.6) That OOS property Class rankings are usually vastly different than the local market they live in.7) That a Class X NEIGHBORHOOD will have mostly Class X PROPERTIES, which will only attract Class X TENANTS, CONTRACTORS AND PMCs and deliver Class X RESULTS.8) Class A is relatively easy to manage, can even be DIY remote managed from another state.9) Class B usually also okay, but needs more attention from owner and/or PMC10) Class C can be relatively successful with a great PMC (do NOT hire the cheapest!)

Many OOS investors set themselves up for failure because they don't truly take the time to understand:1) The Class of the NEIGHBORHOOD they are buying in - which is relative to the overall area.2) The Class of the PROPERTY they are buying - which is relative to the overall area.3) The Class of the TENANT POOL the Neighborhood & Property will attract - which is relative to the overall area.4) The Class of the CONTRACTORS that will work on their Property, given the Neighborhood location - which is relative to the overall area.5) The Class of the PROPERTY MANAGEMENT COMPANIES (PMC) that will manage their Property, given the Neighborhood location and the Tenants it will attract - which is relative to the overall area.6) That a Class X NEIGHBORHOOD will have mostly Class X PROPERTIES, which will only attract Class X TENANTS, CONTRACTORS AND PMCs and deliver Class X RESULTS.7) That OOS property Class rankings are often different than the Class ranking of the local market they live.8) Class A is relatively easy to manage, can even be DIY remote managed from another state.

My guess is that the HOA did everything correctly and your failure to provide the new mailing address caused this.

If Erik were subject to UBIT he would want the expense backed up so that way he can avoid any penalties for failure to issue a 1099 if it was not for a rental.The benefit is not necessarily that of the IRA, ROTH or Traditional unless you have other expenses.