Good Day, so in our state(VA) title insurance and survey, both are optional and add up to nearly $2200-$2500.It's a HOA based community, which is 15-20 years old.

Some neighborhoods (and/or HOAs) have strict rules/regulations pertaining to rentals :) Good luck and have fun with your search! 

I assume the HOA covers outside expenses, but leaves the inside for your expenses.

For example, mortgage/HOA/insurance/taxes on an average mid range house in a B neighborhood are likely to run 1000 to 1800 a month, but double that amount is likely above market for house rentals. 

HOAs can be very controlling and make decisions that negatively affect your investment. 

I have a few questions :-1) What is everyone’s feeling about getting a condo with a HOA as a first rental property, so the house is going for 138k, the properties around the neighborhood are selling for 175-180k but the house needs a lot of work including rehab on two & half bathrooms, kitchen, whole house needs new flooring it’s gutted right now & also few cosmetic work. 2) How do I find cash for this property to purchase and rehab?

Costs: Rehab, any expenses associated with filing fees, title company,  attorneys, realtor fees etc.Average rehab 10k, realtor 6% 35k, misc 5k =50k3.Debt attached to the property = any surviving liens like taxes, hoa, violations, violations,  municipal etcNow, subtract the costs and bebt to the final proceed from liquidation.I.e $500k - 50k=$450kNow, we now that your break even bid amount is $450k.This is where YOU come in...ask yourself what is the LEAST im willing to make on this deal?..

Buying two townhomes will provide some protection, but it depends on the HOA.

Just watch out for pricey HOA fees out here... it’s the only thing holding me back from keeping this property in order to break even with rental income.

Condos are fine to invest in but they are very sensitive to a market turn especially with high HOA fees.