Notice I said crap, the real deals will be found when you talk to the brokers who have the crap for the public, ask them about other deals. 

Do you have public water and sewer, well and septic or a combo of the two?  

Are there any public resources where I could pull comps for smaller properties?

Regarding question number two about whether or not your transaction will be tax free, see IRS  publication 523:http://www.irs.gov/publications/p523/ar02.html

I further expalin that since the mortgage is public record, they are basically saving me time if they tell me the details of the mortgage. 

Then I would visit the Public Housing Agency in your community.  

I know this is an old thread but it helped me so I figured I would post this for the sake of forum posterity-Here's the actual law:http://www.justice.gov/crt/fair-housing-act-2Here's the text pertinent to the exclusions: (b)Nothing in section 804 of this title (other than subsection (c)) shall apply to-- (1) any single-family house sold or rented by an owner: Provided, That such private individual owner does not own more than three such single-family houses at any one time: Provided further, That in the case of the sale of any such single-family house by a private individual owner not residing in such house at the time of such sale or who was not the most recent resident of such house prior to such sale, the exemption granted by this subsection shall apply only with respect to one such sale within any twenty-four month period: Provided further, That such bona fide private individual owner does not own any interest in, nor is there owned or reserved on his behalf, under any express or voluntary agreement, title to or any right to all or a portion of the proceeds from the sale or rental of, more than three such single-family houses at any one time: Provided further, That after December 31, 1969, the sale or rental of any such single-family house shall be excepted from the application of this subchapter only if such house is sold or rented (A) without the use in any manner of the sales or rental facilities or the sales or rental services of any real estate broker, agent, or salesman, or of such facilities or services of any person in the business of selling or renting dwellings, or of any employee or agent of any such broker, agent, salesman, or person and (B) without the publication, posting or mailing, after notice, of any advertisement or written notice in violation of section 804(c) of this title; but nothing in this proviso shall prohibit the use of attorneys, escrow agents, abstractors, title companies, and other such professional assistance as necessary to perfect or transfer the title, or (2)rooms or units in dwellings containing living quarters occupied or intended to be occupied by no more than four families living independently of each other, if the owner actually maintains and occupies one of such living quarters as his residence.

Stress that the deed of trust is recorded against the property as a public lien.

I suggest you bring the issue to light by contacting one (or more) of the following:Real Estate attorney that specializes in HOA law (to potentially sue the HOA)Local newspaper investigative reporterLocal TV news investigatorsOffice of the Ombudsman for Common- Interest CommunitiesCommission for Common-Interest CommunitiesI particularly like the locals news investigators because they would handle all of the work, benefit from it, and help bring it to public attention, thus helping others and the community as a whole.

I would ask him to relocate the punching bag and Christmas lights to a location that is not in view of the public.