I'll be a first time homebuyer and I've been under contract twice but terminated due to the HOA having a lack of funds.

It can be used for principal pay down, foreclosure avoidance, HOA, flood insurance and utilities.

I believe I've matched up liens and releases or satisfactions except for about 190K in 4 remaining loans from the Small Business Association, but there are two things that make me think it's better than I understand:1) The foreclosure doc asserts that "the line of the plaintiff is superior in dignity to any right, title, interest, or claim of the defendants, (list of defendants including the HOA and the SBA) and all other persons claiming by, through, or under the defendants and the property will be sold free and clear of all claims of the defendants...This asserting that it's superior makes me think that any other lien is inferior?

Townhomes are great but they may come with high HOA fees depending on the community.

View report*This link comes directly from our calculators, based on information input by the member who posted.With an HOA

The major ticket items are covered by the HOA (roof, electrical, etc).

Looks like I should have included more specifics in this equation - thanks for the feedback - This would be a new purpose built freestanding duplex townhouse that is part of an assoc - HOA of $100 per mo covers outside maint and repairs - investor would put down $80k and I would bring about 10k to cover points and closing costs  - I accounted for 5% vacancy and 5% maint but no additional capital expense due to new build, HOA covering roof/siding/landscape etc and a projected sell in 5 years - rents would cover all expenses including taxes etc -pay me 7% management fee and make investor $260 per month - homes are appreciating at about 7% per year for 10 years so I went conservative and estimated a 5% growth going forward - as I stated in my earlier post this is a VERY hot growth/job market

In Plano you have to find homes that might allow it...like no HOA. 

I did have a few questions about some of the details.I've heard that some HOAs or developments only allow you to rent through their own management company.

You likely won't offset your living expenses completely, and there will be HOAs to deal with, but they're also an option to at least decrease your living expenses.