Refinance will occur at 6 months, 5.75% interest rate, amortized over 30 years. 

Consider going in on a deal with a couple guys that know how to do it right.... and now it occurs to me that this is perhaps what you meant by syndication.  

The town itself isn't the greatest, (Drug bust, prostitution ring literally broken up about a month ago a few doors down, as well as a shooting that occurred in a lot over about 2 years ago), but there is money being put into the area and real effort to rejuvenate what once was actually a pretty lively area, for example, 2 new apartment buildings are being built in an empty lot 2 doors down within the next month. 

There were a couple water buckets in the basement where the two leaks were occurring so I would assume the association is aware the issue exists.

I once heard it phased like this: did the damage to the item occur from a one-time event caused by the tenant or is the damage the result of normal wear and tear?

HOA and MUD costs.Vacancy costs (8%+)UtilitiesRepairs and incidentals (small items, like a toilete repair or fence small repair, likely to occur more often)Capital Expenses (big items, like HVAC or roof, rare to occur, but with big impact)Property Management (10%+)CPA and Attorney costsTuition (you'll pay for that in either mistakes, time, effort or money)

I have been to a MNREiA meetup but have not been to any others as they usually occur when I am still at work, so I cannot speak for the other meetups. 

A low appraisal may impact the necessary 80% LTV.Penalties: Any penalties occurred could further impact the RE ROI. 

It covers you in the rare, but occurring, instances when a different version of, or when the owner’s name is misspelled.

If this is a normally occurring failure or storm backup or clog then I don't think you MUST do something.Now, if this is a good tenant and you want to show good faith, maybe you could do something out being a nice landlord to retain a good tenant.Also, the tenant's renters insurance might cover something as well as your landlord insurance.See this thread for some past experience on this.https://www.biggerpockets.com/forums/52/topics/236...