That doesn't sound right..

There's a 'Due on Sale' clause that could be invoked, but sounds like it rarely is. 

Daniel,It sounds as though you may run into much more in repairs than expected. 

Reserve studies are expensive so the fact that they are foregoing the study until 2019 is ok in my opinion.The move from 56% to 27% sounds reasonable as I'm guessing paid for a larger project, but you'll want to pay attention to what the study says needs to be addressed and if the condo will have a shortfall.   

It sounds great, I know, but the problem is my conscious and my potential to receive his support again in the future, I fear.

I know this sounds a little nuts, but it seems to solve a lot of "problems".

I had actually had an attorney answer, "We don't know yet" to a question regarding this issue because there have been no precedence set.In saying that, always error on the side of sound judgement. 

which is doesn't sound like they are???

Details in MLSUnits: 6Taxes: $5874 (annual)Gross Income: $48,600 ($675 per month)Net Operating Income $38,838Total Expenses: $9762Vacancy Rate: 5%Asking Price: $449KOwner pays Trash & Water______________________________________________________________Based on the expenses I am assuming that the property management is completed by the owner and that they are including ~$4K a year in insurance.I ran the numbers in my own Deal Analyzer and I added:5% of Effective Gross Income as Maintenance Expense 10% of Effective Gross Income as Property Management ExpenseBumped the vacancy rate from 5% to 10%Insurance: $3000 (annual $500 per door)Water: $3240 ($45 per door - typical in city)Trash: $1,800 ($25 per door - complete guess)$12K for improvements ($2k per door)20 year note @ 5% with 20% down (assuming full asking price)2% Closing costs______________________________________________________________My numbers show a Cap Rate of 5.7%, cash on cash return of -5.12% and -$1,668 of annual cash flow. 

Sounds like you used one of their buyer agents to find the place, and I’m wondering what’s in it for them with a program like this.