I'd suggest you pass on both, Will.Class-D properties can be difficult in terms of occupancy and collections.

Look for occupancy, rates, new tenant concessions.

South Euclid does have a vacancy inspection and an occupancy inspection that is required prior to allowing tenants.

Also check the City's online Zoning Archive where all the history of the buildings permits and prior use and occupancy usually is located.

If it says Exclusive then it's for owner occupants, not investors.

Can't compete with those who can offer cash, so looking for an FHA qualified loan as I will be an owner occupant.

You'd look at historic patterns and owner/occupant profiles, we don't have enough data points to figure the probability but 1.2% of profit is an acceptable known risk by most standards. 

The lender is more than likely going to be more concerned with the owner-occupancy status than the complex is as there are rules that most lenders will not lend on condos that are not at least X% owner-occupied.

(I had a cousin who had to rip out the carpet, carpet padding AND subflooring due to previous occupants who had dogs who peed so much in the house they had to gut it to the joists and start over.)

If this were the case we could continue doing this every year or so as long as she lived there for a year and met the owner occupant requirements.