If my thinking is wrong there then please correct me!

Since you bought the property correctly (Low) you have enough to pay it off and get cash back for the Rehab, Holding and closing costs ($43K) to be covered by the Refi loan of $140K. 

If you use it and it saves you time and gives you a tool for the rest of your life -it's priceless. 

If they do, it's probably not done correctly. 

I hope you have documented and can defend thatTake the extra days and do it correctly 

I know there are complications with loaning to an LLC, so is a partnership the correct structure?

@Rob Drum Yes, Google Maps has been a wonderful tool!

He sees the market going up, and that it’s a sellers market, and says I should wait for the next crash to happen before I jump in"  If the market was assured to keep going up you would probably be ok, but what if it corrects, just as you jumped in. 

@Jared Huffman , Linda D. is correct.

This is why the HOA has an interest in your insurance coverage.The HOA is covering the outside of the units BUT - if you are unable to rebuild the inside of the unit because you don't have the proper insurance that is bad for all the owners in the association so that's why you are getting heat about having the correct coverage.