The back-up plan is to simply flip the property and take the cash out now for the next project.The Project (2 unit Multi-Family):Acquisition/rehabLand Acquisition:     275k (I'd use my cash to buy)Hard Money Loan:  100k (I might use my home equity line at 4% APR over 20)ARV:                           465k (This is my best assumption based on other comps)Refinance:                348,650Cash out:                  26,250Income:Rent:                         1800x2 (This is conservative)Capex/Maint.          300x2Expenses:                400 (water/trash/electric/sewage/insurance)Using these numbers the property looks like it generates a COC return of about 30% per anum (on the 26k outstanding).

Second, I can't imagine the deposit covers the outstanding $1600 so the problem doesn't go away by giving up the deposit, the figure just gets smaller.2) The late payer.

@Chad Urbshott As I assume you know, any outstanding HOA debt, whether a lien has been filed or not, becomes the responsibility of a third party buyer at a mtg foreclosure auction. 

You do it by adding up all your outstanding debt balances related to real estate (mortgages, credit card, etc.) and divide it over the fair market value of the real estate portfolio (including cash dedicated to the portfolio).

The main highway through town also just got upgraded to I-14 awhile back.

What if someone has an outstanding amount left on their mortgage?

Location - Ideally Orlando/Tampa, but I’ll consider anything in the Southeast US doable, and any outstanding opportunity in the country. 

Location - Ideally Orlando/Tampa, but I’ll consider anything in the Southeast US doable, and any outstanding opportunity in the country.

I'm getting more familiar with them but there are still some outstanding questions that I need answered before making any moves.

Are all outstanding fees paid prior to repairs?