@Chris RandInvestors who have rental properties report their rental activities on schedule E.You report rental income less expenses(insurance, utilities, repairs, mortgage interest, real estate taxes, depreciation etc).The great thing about real estate is that you may have a cash-flow positive business but report a taxable loss thanks to depreciation.The difference between cash-flow and taxable rental income is that depreciation is factored into taxable rental income and principal payments are not a tax deduction.generally speaking cash flow - depreciation + principal payments = taxable rental income

If the number ends up as a positive number, it adds to your income, if it ends up as a negative number, it adds just that portion to your debt ratio.

The seller truly had done nothing to re-position the property.

We personally own 19 doors in a garden style building and 3 MF duplexes in and around St Joe and we do not have issues with tenancy rates and remain cash flow positive. 

In particular, take a look at the item labeled "Property tax impact table for 2018, 2019, 2020."  

Do you have much concern of noise impact on weekends? 

You will want to give them a lien position in case the deal goes to pot.

The H O A sale is subject to the First Mortgage, however no as it currently stands any overages would go to the owner since the H OA is in second position.

Better yet, negotiate to take over their position.

I am not in a position to pull the trigger within hours.