FYI, I always make sure the windows have coverings available, and that the shower has a curtain if it doesn't have a door.Aside from that, I would consider tile in the kitchen and bath areas, and pull that carpeting out and replace with wood or vinyl plank flooring. 

Your ownership of the condo is from the drywall in, so you only have to insure the interior, rather than the exterior(the HOA covers the exterior).

As I do not want to put down more than 5%, but will need lending to cover the rehab.Second Question:  Is hard money lending a viable option for this use-case? 

Save up enough so that if you buy a place and the roof caves or all your hvac units explode, you have the funds to cover it.

Vacancy should be projected to at least cover one month of rent.  

They covered everything but carrying costs. 

Since we are able to save $1000/month and the P&I is only $700/month we could cover that if the currently rented unit becomes vacant.

Then make decision to calculate gross rent to cover peak usage rates that way tenant has utilities built into rent and you save expense of all the HVAC  work.

The Refinance loan must be able to cover paying off the acquisition loan.  

You'll need a builder's risk policy to cover the property during renovation (if you're not occupying the property).