Don't just make sure they are solvent, see if they are building capital reserves.

Not only deals cost more, but you may not withstand the commercial real estate cycles and still stay solvent without enough capital. 

And of course solvents from cleaning up cars and parts.The problem is that with heavy ran, all those chemicals tend to rise up out of the water-soaked ground and run off into the area.As an aviation side note, it used to be common that small airplane pilots would use fuel testers on their gas tanks by sumping a little fuel from the wing tanks to check for water contamination.

Your description doesn't sound like a place that needs a full time manager so unless they are performing other services that cost is way out of line and I find it hard to believe an association can remain solvent giving up 33% to a pm. 8% for reserves is actually pretty low in most cases.

It sounds like you'd be funding your business off of credit cards which you would want to run worst case scenarios against to ensure your business could remain solvent.  

Even though I can still cash flow at $300 a month, there is no strong indication that the fees won't continue to climb or that the hoa will magically become solvent.

The DIL has language where the previous owner asserts that they are solvent, etc. but I know a bankruptcy trustee would look to this transaction first as a way to clawback funds.

Call the RE Commission and ask them, they may give you the answer.This will vary state by state and even to local custom, you may find yourself in an eviction and be told to get an attorney when your LLC holds title as it is a separate entity from you.Brokering or management may not always require consideration or compensation, and obviously there would be as you must keep the business entity solvent and pay its expenses.

You also need to keep entities solvent, they must be reasonably funded as to the scope and purpose of business conducted or expected, that can be significant for a real estate operation.Many have a false sense of security operating behind an entity, financial and legal compliance does not change at all based on any structure of an entity.

Yes;  you are well solvent and servicing the loan perfectly well.