And I agree and one of my biggest concerns is being in a bad position with the HOA by going against their wishes. 

So much depends on what you agree with the tenants on in the leases.

I agree with the comments above.  

Our total Op Ex is about 40%, so I agree 30% is low. 40% seems about right for our size and age (17 years) property.

I would agree with @Aaron R. you're looking at a build cost in the range of $150- $200k, so I would suspect that most investors would not pay more than $175 - $200k. 

Well i spoke to him today and he agreed to me paying off the rest of the house for him (16% down) and then I would pay him the rest of the “mortgage” (technically it’s already paid off but I will be paying him until I hi 300,000) and he is also willing to do a pretty low interest rate (not an investment property) Now what did you mean by financing?

I know there a lot of different names for this strategy including Land Contracts and Installment Sales Contract but my understanding is that the seller retains title to the property until the buyer, or investor in our case, pays off the loan amount agreed upon.

I will do a short term (week or so) hold agreement with a non-refundable fee that becomes the deposit if they sign the lease on the agreed date.In your case, I'd speak with my landlord/tenant attorney and get an understanding of my options.

I agree with @Andre Crabb in also checking out the midwest including Pittsburgh PA, where I live.

I agree with Hai Loc We keep our A/B tenants on one year leases.