Get pre-approved so you can move quickly when the time comes to put in an offer.Are you going to use DCHPAP or a down payment assistance program? 

If they insist on sending individual rent payments, we charge an administrative fee to cover the extra bookkeeping effort and bank charges.

@Terry Lao if bad management continues, it will keep hindering potential buyers’ options for financing, therefore, keeping the market value of those units down as they aren’t “marketable” Only options for a potential buyer are private mortgage and/or pay higher rate.I had this scenario myself where I owned individual condos in buildings governed by associations.

So is changing sectors from residential to commercial or passive fractionals - all depending on th individual facts of your case. 

I purchase a gemini (which is basically a duplex where each side is individually owned) at trustee sale. 

Happy to try and assist.

For example a 12 or 13% ROI looks great for an individual but a 40/60 split on that leaves the better half getting around 7% back.

Just my $0.02 If there’s anything else I may be able to assist you with just let me know.

We keep getting told that because we are first time homebuyers and eligible for FHA loans for $250,000 and make less money so we also qualify for down payment assistance programs, that we are smart to invest in real estate.

I would buy  out the tenant, assist as much as possible in locating a new home for them as well as assist with their physical move.The mistake would be entirely my responsibility and I would do what ever is necessary to comply with the HOA.If the tenants refuse to move I would file a eviction and hope it will be motivation enough to get them to reconsider moving.