The only downside for me (besides debt service) is the opportunity cost of not having the money actively invested. 

While appraisers do need to include actives/pendings in their report, a sold comparable will carry primary weight.

We are both searching for avenues to increase our active and passive income in the Denver Metro area.

Point being, never said what Amazon can't do because every single time Amazon is bet against, they win. 

The cost is that you need to pay to create an LLC and keep it active yearly.

I''m currently Active duty in Hawaii, contract ends in 2020, love it out here but can't wait to get back home.

Not a foreclosure different scenario .. but I bank at a small commercial bank.. if you used a large major bank I bet that would be tough to do.but once they cash the check I think your out of luck unless the sale was flawed on the trustee side the money is not coming back.

I bet we know a bunch of mutual people if you know any sig guys.

But your right, no one knows.... however if you had a million dollars what would you bet on..... or rather 700k. 

You may have screwed up, but I would bet money that the HOA is not following their covenants to the letter, because it's hard to follow anything to the letter, and I would exploit that weakness.