They have sent me a "Sellers Affadavit of Non Foreign Status" form that says they are exempt from FIRPTA for federal reasons.

They (through their agent) have sent me a "Sellers Affadavit of Non Foreign Status" form that says they are exempt from FIRPTA for federal reasons.

Recently, due to some health problems and other issues, it looks like I will need to change careers.  

The Hero Loan Program as I know, helps anyone who is an education or health professional with purchasing a home.

At the same time, my financial status doesn't have me in a position to do much thus my initial thought was HML.

Forget cashflow (or rational appreciation), that city has long since passed sanity or anything relatively close to market fundamentals for you to want to touch real estate 'investments' with a 100-foot pole.If you can't tell, I could go on forever about the current status of the Canadian real estate market! 

Second if there is a drastic change in the water bill i can look back over the history and compare to similar occupancy statuses to determine if there is a problem with the water that we have been unable to detect(ex. leak in the main water line coming to the house from the street(which you would have to pay for)).This is what I have learned so far in my limited experience.

I have contacted the county health dept and they emailed a sketch included with the original septic permit.

Is it flat out a bad idea (keep in mind that once this job ends we are 1099 again and won't be able to a loan for several more years, hence the urgency) or is the risk minimal that the lender would become aware of our filing status of rental property? 

The financial health of the association and their ability to hit you with fee increases and special assessments are mostly out of your control.