If your capital restricted find some partners if you stumble onto a good deal that's above your price point. 

Like others have said, I would be concerned about the majority owner changing rules such as restrictions on renting the units.  

I would offer based on assuming the worst and make sure that I checked out the condo association. you want to make sure they are financially healthy, don't have too many vacancies, and are not at the limits of any rental unit restrictions.. 

Owners in LA have the right to occupy one of the units in rent controlled apartment buildings but there are restrictions on which of the units you can roccupy.  

The assessment may include a civil engineer looking at the feasibility to gravity feed sewer or need for grinder pumps or a more costly pump station, assessing soil types for building suitability, wetland restrictions or conservation area requirements that may affect the buildable area, assessing zoning and municipality temperament for zoning changes, and maybe at an additional cost a soil test for onsite septic if sewer proves to be unavailable or too costly.

They should be restricted to lending or protecting their loans not going in with federally loaned money to get this interest.

If your goal is to grow your portfolio at a quick pace then I would pay the higher rate and cash out up to 75% of fair market value by refinancing though local commercial lender or private equity firm that doesn't have a value seasoning restriction.

Some states may have restrictions on dual representation.http://app.leg.wa.gov/rcw/default.aspx?

If so, I think that could bode well for other cities to follow suit and thus not restricting short term rentals. 

This situation make conventional financing nearly impossible for a seller which restricts the likelihood of a retail buyer being found.