Or it was previously incorrectly administered, but is now properly assessed according to the usage of the home.If the escrow items (taxes and insurance) are being correctly, there's really nothing you can do. 

Any investors in the area or beyond that would like to network for advice, ideas, etc..

I am currently looking at a few locations/properties though Zillow, redfin etc. to get an idea of the rent/cash flow potential in the surrounding areas. 

I have no idea what source you are quoting, but it appears to be some sort of blog or other writing that is not from the HAP Agreement or the HUD website.  

Using funds in a retirement account for real estate is a bad idea.

I actually have a 199 Acre Paper Lot for sale there, and would like to understand how to properly List it on BiggerPockets.

I know you say you trust your friend, but unless you can afford to lose that $10k (and your friendship), you really should be doing this the proper way.  

I love this country mate but it's starting to resemble communism...The most thankless job in all of real estate is property management.It's almost impossible enough to find a legit operator like yourself and then folks request lower fee's.Unbelievable...I don't think folks understand how much time and effort is needed to property manage "properly" and the 10% is peanuts.Sure, if you pay in peanuts you will get a monkey heheTry self managing and many will come back crying in a few months.Just my opinion after pounding the PM pavement for 10+ years now 

Notify seller's broker that the contract was properly cancelled pursuant to the financing contingency and that he is not to release the funds to his client.

I have seen places like Cleveland and Columbus get mentioned on the forums as a good place to invest but I’m open to other ideas.