One owner in town finally gave up fighting the city and sold a building they were breaking the rules with.

Make sure all of your supporting analysis on the cashflow of the properties is spelled out clearly for a lender. 

Any remaining dues follow the "first in time, first in line" rule and will fall in order based on when the hoa recorded their lien. 

And expenses were not included in the Brokers packet so I am going on a rule of thumb of 50%. 

I.E. a cap rate, 2% or 1.5% rule or any of the countless others ways of doing it. 

I used protective ear plugs and ear muffs during this year, along with making contingency plans about moving if the situation didn't get resolved.My takeaways from my experiences are to be persistent and learn the rules of the system.

Such as does the current asking price and monthly rental income meet the 1% rule.  

@Colleen Fiumara A rule of thumb I use is based on a 30% return based on the total cost per unit.

You may want to add addendum's and rules and regulations as part of the lease also.

The framework problem is completely separate issue which has nothing to do with her or her month to month lease ... as long as you have her proper notice that you would not be renewing her lease again then you shouldn't have a problem BUT section 8 might have different rules which I'm not familiar with.