Just looking to spur some thoughts on the subject.  

You are subject to special assessments and increase in dues with no real say in the matter.

HUD will eventually foreclose and then the property will be subject to Hud guidline 24 CFR 206.125. 

POF from HML should simply state they reviewed your financials and subject to title and values they are prepared to loan X % against any property you find. 

Please document rental intention and if you sell this as a flip, the income might be subject to Self Employment taxes.Seller financing will convert the ST gain to the LT gain. 

As you grow your war chest through REIT's/mutual funds/ETFs, are you then using proceeds from those to invest back into real estate or are you trying to keep a certain portfolio diversity?

BP publishes 8-10 new real estate books per year; you'll likely find something for every subject you're interested in.

I don’t yet have an insurance policy but after reading and watching a lot of content on the subject I just need clarification because it seems like having your money grow in multiple places is the way to go!

You can either buy subject 2 the existing loan or you can find a good deal and get a loan on it.

This means that the rental income and expenses is reported on your Form 1040, Schedule E, rather then an partnership return (form 1065), C-corporation return (Form 1120), S-corporation return (Form 1120-S), fiduciary return (Form 1041).You can elect to be treated as a C-corporation or an S-corporation, however, you are then subject to different income tax consequences, and an additional tax filing for the rental income and expenses stated above.