When I look at the limited title report provided by the seller (the Pro Title dollar search I believe) I see both the first and the second listed. 

The only other option for you, and maybe a really good one, is to invest in a limited partnership offering.

(which is hard with limited funds).Example: The motivated seller offered to sell his $100,000 house for $90,000 and I put $10,000 in the deal which gives me a 20% equity position. 

Income limits, as well as retaining home for a certain period of time come into play, but if you were to retain/rent and jump to another property.

If this is legal does this somehow limit your IRA's exposure to liability if someone sued you? 

The fee continues “because it can” and as a result of the Real Estate industry and legislators turning a blind eye to attempts to legislatively limit or end this practice.

Agreed Charles, HOA fees can really rob cash flow in a market where rent per bedroom/tenant is limited.

Usually the amount is limited to around $3000 in damages, but it can do a few things.  

If that is true it severely limits the pool pf prospective properties to try this on. 

The second is it always peaks my curiosity when people talk about losing their job, being on the ledge of broke, have limited experience, but then decide they want to be the next big thing in real estate investing.