I assume the HOA Has to be some type of legal entity, registered with the state, usually the divisions of corporations, or whatever your secretary state calls it.BTW, is this a wood wall, concrete, etc?  

When I'm running through the numbers (I'm running them as though both units are rented out), the cash flow is typically negative or if it is positive, it's less than $100 a door.

I’ve had this happen before, usually it’s not a big deal but it depends on the tenant and the company.

I don't want to be the negative person here, however Bend has historically cycled fiercely and we are back up at the way too high price range. 

This usually is a “title issue”.....whether it be the actual property title/coop agreement, an error in the foreclosure, original mtg, etc.  

Especially in a purchase there's usually something that doesn't go completely according to plan.

Usually for a year, is that part of your game plan? 

Negatives: Weather, of course.

I usually ask what’s up on the second and remind of the late fee.

Neighbours very often do not get along with renters and renters will often leverage their position if they find out a unit is illegal.The problem usually arises out of the fact that cellar dwellers are generally low quality tenants and can cause problems that often result in complaints to oficials..