The money comes from the HOA dues, but if the company mismanages the funds or has high overage and people not paying, the money in the account is soft which will make it harder for lenders to lend there.

@Russell Brazil thanks for the shout out@Steph Potter the high bid premium is a difficult concept to explain and understand. 

Everyone is doing postcards, so you won't stand out, and regular folded letters just get tossed in the junk pile by default.Of course, this is all a moot point since you're operating in an incredibly specific (but high demand) niche.

If so, how high/low is it?

My CPA advised me to split the generic costs such as property tax and water bills equally between both units, which seems reasonable.

Is removing black mold from the basement a high priority in most cases? 

Hey guys, does anyone have any experience with water disputes in their city?

@George Baal I would recommend taking out the HELOC to start but given the high variable interest rate, I would then consolidate that debt into a better financial vehicle.

I'd stick with high quality.  

Insurance is highly specified to the situation, individual, property, etc.