I can understand your sentiments @Lloyd Stanton, but at the same time, given the statistics on certain types of criminals recommitting acts, it's troubling and seems risky to me and to the other tenants that I rent to.  

No Investor goes into a property knowing they are going to have a negative cash flow, unless they have another angle in play.

Adverse possession is definitely out of the question. she must be violating some sort of city ordinance with the mess all around her house and the negative affect it is having on her neighbors home.

For me, the positives outweigh the negatives,  I'll find a way!

I thing owning property in an HOA is not a negative thing as long as you do your homework and research.  

It looks like my options are thus:1) Buy something that only breaks even or is cash flow negative from MLS with my agent (doesn't seem smart to me)2) Pay my agent commission out of my own pocket for any wholesale properties I buy through wholesalers I find (the numbers don't work out in my favor here, leaving little margin for profit....)3) Don't buy anything at all until the exclusivity agreement ends ... in another 11 months (this does not seem viable to me either, since that would set me back enormously in my investing goals which include acquiring $X in passive annual cash flow this year)4) Find a friendly wholesaler who is willing to pay my agent some commission without padding the price 5) Buy from a wholesaler and legally don't involve my agent.

Is it verified by an agent, or an appraiser with statistical facts?

One unit vacant one month and your negative for two months. 

@David Olson You're gonna get a lot of negativity from people who have had bad experiences with wholesalers.

Government creates a 'program(s)', program(s) negatively affect society and they blame the bigotry of private enterprise.