Secondly, your PITI payment is already barely going to cash flow by real life measures (mgmt, expenses, vacancy, rent loss, capX, etc) since there is not much margin for error if any.

This will have huge influence on your cap ex "prediction".Predictions are just that, a prediction, and can be in error.

I know this may sound like a rookie question but I have not had to deal with financing much yet.  

Hopefully you have Errors & Omissions insurance.

They may be one to help you catch a bad error in your assumptions or direct you towards a deal you would have never sought.

I'm  asking because HOAs carry errors and ommissions insurance and that may apply here.

Remember to protect yourself, and if your state has a contractor's bond (performance and payment bond in the commercial/government space), this is the time to use it, to weed out contractors that think they can outsmart you, if they agree the 11k, the margins are really slim and there is no room for error.

Do you spot my error?

in my opinion that is a slim profit, very little room for error, but if you are fine with it, good.  

Also, since reviewing all of my records and the banks records I have found, what I consider, major discrepancies and keying errors on their part.What are my rights and what do I do?