A decision to attempt to go short on a current mortgage with a solvent borrower is a more delicate situation, especially if they have other assets, are high income earbners, or  have substantial funds in the bank. 

Is the Tenant solvent or considering bankruptcy?

This is where it comes down to what do you want out of the deal . . . if you go the court case route then you're best scenario would be that it can fit into small claims court, they don't show up, and their business is solvent enough to handle a $10k judgment.   

I ended up working 2-3 jobs just to keep my investment solvent until it sold (we did finally make a bit of a profit on sale).What we learned was that personally, I always want to structure the financing to be cash flow positive.

Don't just make sure they are solvent, see if they are building capital reserves.

Not only deals cost more, but you may not withstand the commercial real estate cycles and still stay solvent without enough capital. 

And of course solvents from cleaning up cars and parts.The problem is that with heavy ran, all those chemicals tend to rise up out of the water-soaked ground and run off into the area.As an aviation side note, it used to be common that small airplane pilots would use fuel testers on their gas tanks by sumping a little fuel from the wing tanks to check for water contamination.

Your description doesn't sound like a place that needs a full time manager so unless they are performing other services that cost is way out of line and I find it hard to believe an association can remain solvent giving up 33% to a pm. 8% for reserves is actually pretty low in most cases.

It sounds like you'd be funding your business off of credit cards which you would want to run worst case scenarios against to ensure your business could remain solvent.  

Even though I can still cash flow at $300 a month, there is no strong indication that the fees won't continue to climb or that the hoa will magically become solvent.