Possibly, ask your attorney and be prepared to spend a lot of cash to defend this position in court should it come to it.

We currently own one house that has around 44k left on its mortgage and has a value of around 120k that we rent out with positive cash flow. 

I was in a similiar position not too long ago and kind of was in a rush with the excitement to get out here and start investing but after consulting the forum members decided to continue to build my cash while furthering my education through podcasts, books etc.

In a market where rents are depressed, the RC will often be significantly higher than the ACV.The problem with ACV is that, on a partial loss, the claim, under an ACV basis, has a deduction for depreciation.You will have to kick in for the deductible and the depreciation.If your Rental is in good shape, updated systems, well maintained, etc. the rates from some companies with onlyRC may be equivalent to others that will only do ACV.I just wrote one in CT that one of our carriers for $400,000 RC was $100 less than the next best rate which was based on $110,000 ACV for the same property.There are many endorsements that are available on the Homeowners policy.

I am looking for a contract that I can use between my company (to rehab RE) and an investor to secure and protect the investors position in the deal.In other words what forms / contracts do you guys use when getting cash from investors?

How can the secondary position get what is owed to them?

Depending on your availability, if you purchase these units, it may be worth your time to serve in leadership for the HOA to ensure you are in a position to protect your investment. 

I'm assuming your offer would put it in a short position if you're looking to pay less than the listing price.

I am going to be able to save more money soon to buy a property that can have positive cash flow. what do you think about my point of view?

All goes according to plan my fiancé will have a real estate license by the end of October and I will start my next full time job on Oct, 8th.I am concerned about my eligibility to obtain a loan and would like to know if anybody has advice on how they would go about tweaking numbers by paying down debt and lowering the down payment to lower the Debt to income ratio to get approved or if they think I sound like I’m in a sound position.