Most heating climate states have minimum temperature requirements you need to meet.

Important to note, I am provided full access to all of the meetings and pre-development functions to grow my knowledge base while I am getting my personal financials in better shape to purchase properties I view as better long term investments. 

They were supposed to have a response yesterday and now my realtor states the HOA is meeting up again to decide. 

That is why people in large part want to meet with a professional.

Assuming this is legal in my city having 3 people in a 1 bedroom unit, are there any down sides I should be aware of? 

Landlord policies often cover rental income loss and legal fees.

It’s my personal opinion, and not legal or financial advice, that if I were you I’d plan to start out with one or two conventional loans where if you’re house hacking you can get the low down payments.

Hire compentent legal counsel familiar with your local market to assist with the agreement preparation.

Your post title is very misleading.All you did was get a good sales price - which agents have a legal fiduciary duty to do. 

I am unsure of the legality of this, but I would try to keep the rent the same and provide a construction impact rebate.