Concerns?

However, now that I see that the HOA is the one with most of the “for sale” lots, I’m concerned that they may be setting the “market value” and propping it up and/or they have too much control on what the market value is since they have such a market share.

This is NOT true and a dangerous attitude to have. 

I'd be more concerned about the liability aspect than the funding.

Feel free to reach out if you have any questions, thoughts, concerns etc.

I would get it checked out every few years, if you are concerned.

This is always the danger in mixing your investments with your friendships. 

That isn’t a concern.

The 15% DP, would have wiped out my savings, however, I wasn't overly concerned as I do have a decent gig, relatively low expenses, a healthy amount of available credit and expected cash flow from another investment property in which I would start to re-build my savings.  

This is a very dangerous game to play with your assets.I would also ask them about their competitive advantage in the market.