You'll then need to apply for the Certificate of Occupancy, pay the fee, and then wait for the inspector to come out and tell you what needs to be fixed. 

- I was hoping that this could allow an FHA 3.5% for her leaving plenty of equity ($92K) to buy me out and cover the down payment and fees ($30k to me, $14k down, $3k fees).

Are you charging an app fee?

What Ido is charge a fee equal to the value of one months rent. 

Property tax: $1227Loan info: 6%, 20 year am, 15% down - $400/monthVacancy 5%: $45Repairs 5%: $45CapEx 8%: $72Mgmt Fees 10%: $90Insurance: $200

I have an HOA fee but that's with pretty low repairs and 5% vacancy.

She faced foreclosure four years later, after the homeowner association said she was delinquent on her fees.

So they are always paying late fees.

This hit us hard but we do not want to have to deal with legal fees and more time if we had to file a larger amount, higher a lawyer, file with a different court vs Small Claims.So part of the reason why the difference is so large is because 1) we were hoping we could have a contractor come and just sand, fill, and refinish the areas that were damaged but due to the floors being engineered wood and also having a certain character to them, we can't have them sanded or you would be able to see exactly the areas that were sanded. 

I live in California and I know the fees are high here.