You need sellers who are motivated to sell.

The law DOES requires to "disclose knowledge of lead, warn and educate tenants" - but the risk of being sued remains, as it is impossible to remove it altogether.If a tenant does sue - despite the fact that we took all precautions and followed the law (disclosed, warned, educated) and the tenant agreed to sign a lease despite the possible risk involved which they were made aware of - I wonder what chances would they have to win, in case it occurs to them to sue?

The tenant likely has the right to stay in the property at the rate on the lease until the lease expires, but all rents should now come to you instead of the HOA.More than likely, the HOA lien remains in place and you are now liable for it.The receivership company that the HOA has engaged with (the HOA can't manage the property directly, usually) is likely very expensive, so you'll have to work to get them out of the picture.I'm the president of an HOA that has a unit like what you're describing.  

Because the letter needs to arrive when there is distress and motivation.

There are very few remaining original build houses in the area, and I feel like rehabbing it would just be a waste because eventually it will be sold, by me or someone else, to be torn down for new home construction.

So if they want to move in prior to the 1st, they owe me that month PLUS the days remaining in the current month.

@Kareem Lyons you have got the right attitude and it is refreshing to hear someone of your age be extremely motivated.

ROI is not the primary motivating factor.

I couldn't see using one of my 3 remaining loans on something so small.

The last several years we have had appreciation, in many markets this has been slowing down.For the people looking at larger deals - it will be about remaining conservative as you have but also making sure you test your numbers.