I’d check with your local laws and attorney first to cover yourself.

Make sure all of your bases are covered before taking on their money.

The duplex's mortgage will be covered all but 98$ by the upstairs tenant.

I would increase Vacancy Reserve to cover one months rent (8.34%).The remainder of the report looks good if they are realistic numbers.

The only way to tell is by whether a tiny piece of foil is still covering a hole on the smaller end.

3% for CapEx is not going to cover these costs. 

Does the association have enough reserves to cover major issues, like a new roof, windows, siding, boiler?   

I'm assuming they'll need to have their own renters insurance because my homeowners insurance won't cover their belongings.3) I don't close on the property until the end of June.

It is, admittedly, a more complex strategy with the attendant risk of having that mortgage payment to cover whether the property is rented or not. 

But if you're buying a condo and the rent doesn't cover mortgage and fees, you're HOPING that when you sell that you can sell the condo for greater than the orginal price you paid + mortgage interest + condo fees....