It is questionable whether the property owner is truly responsible for these costs because there may be some negligence by the HOA for creating this problemI would like to propose to the neighbor to enter into a contract for the sale of the property with the following conditions: $85,000 at closing but only $55,000 of this amount will be released to the seller immediately at closing.

I need a simple proposal that gives them more monthly income than a CD and tax savings while protecting myself.I'd love to hear from folks who have done this any advise is greatly appreciated.

Then get your property ready to sell in the early spring.As for your financing plan, you are proposing less than 10% down.

(Unless someone did a very similar conversion, recently and in close proximity to your proposed property.) 

My take-aways on 2 other points:1) Lease Option tenant buyer (TB):  Curious if you are familiar with Dodd-Frank legislation on these types of transactions. 

@Kyle LancuskiSometimes there are good reasons to do partnerships, division of labor, complementary skill sets, increased capitalization.As I understand it, you are proposing that each of you buy a residential property as an owner occupant utilizing an FHA loan, live in the property as an owner occupant for a year, and then move out renting out the previously occupied unit?

On a fix and flip loan, there is a review of the construction budget and a construction inspector can be hired by the lender to verify the as is condition of the property and the likelihood that the budget proposed is enough to get the property into the condition required to achieve the as repaired value. 

Government - The State of Illinois is fighting over a series of legislation aimed at commercial property owners that have profited from everything above.

If redevelopment for a different use is the highest and best use, you should already have an idea of what can go there, how much it will cost for you to construct your proposed development, navigate the red tape of your city, stabilize your proposed property, and the maximum you should pay for the property in its current condition padding in a profit margin for yourself.

My proposal to the Receiver will be for an additional credit of $250k plus.In regards to an indemnification letter, how much protection will that provide??