There could be some security with the hoa in regards to not getting killed with a sewer line or some other outside expense..old tree falling, earthquake damage. 

I don't know cost details yet, and obviously that's a huge factor, but I was just curious if anyone here had given it a shot and how effective it was.

They would only cover the damage to any contents in the home from the water coming up. which wasn't much.

I'm thinking about adding some value and exiting with a short term hold (3-5yrs) to trade up via 1031.Occupancy will not effect your financing when you are buying above 4 units.Mark

Buyers only have the unit inspected which is great but if the building is falling apart around them they're going to be exposed to special assessments and potentially damage to their unit (roof and exterior leaks).

Should the property become further damaged/vandalized After you have a contract, then perhaps, but not otherwise.

We would like to add a clause that states something to the effect of:   "Your application may be denied if you or anyone residing on premise weighs over 300 Pounds.Any advice as to the proper way to write this statement?

Like foundation work, mold damage, water damage and things like that.

But since B already was the owner imho, the title insurance stay in effect as issued. 

Educate yourself enough to take effective action and then you aim along the way.