HOA waited for every homeowners to send in their portion for the special assessment to replace the roof, therefore, the damage were extensive.

I assumed 70% occ $150/week day night, 95% occ. on  $600 thurs-sat for 34 weeks of the year, 50% occ 89/nt weekday, 200/nt thurs-sat for 18 weeks of the year.To calculate a "cap rate" I used NOI (after mortgage costs, utilities, hoa) and determined it's a 4-8% cap rate.

Purchase price: $95,000After repair value: $105,000Gross rent $1,250/month20 year Fixed option HELOC $71,250: $500/month Cash down payment: $23,750Taxes: $93/monthInsurance: $32/monthHOA: $276/month (this is a condo unit, the HOA is responsible for pest control, trash, and everything outside, so CapEx)Net Cash flow: $349.00/monthWe asked the seller to buy a comprehensive home warranty ($450 annual) in case anything breaks the first year. 

There is no HOA over the 8 unit dwelling. 

But if seller never ask u. U

That's $10,400 from one bad tenant.Or the HOA could send a letter notifying you if a special assessment to repave the parking lot and replace the roof.

If so maybe most of the capex is covered in your HOAs; in which case you’d break even or have a flight profit.

As the developer of your lot, you will have to form the HOA for a condo or townhouse, This cost is typically spread out when developing many Condo/Townhouse units and isn't as big of a hit to your Soft Cost budget, When you are creating an HOA for one Dwelling consisting of Two units, the cost is higher per unit.

If a home is in preforeclosure by HOA and the owner wants to transfer title (home is paid off) can this be done and what would be something to look out for?

My budget is $300K for a 3 bedroom house (also open to condos with HOA < $100).