Quote from @Jonathan Rieder: It was specifically stated in the add that there was an ADU, which I assumed needs to be truthful and that an illegal ADU would not be considered an ADU, am I incorrect on this?

Here are just a few reasons why we shouldn't rely on illegal immigrants:1.

Hey guys if a city worker who can buy properties for half off on the land bank as part of there benefits would it be worth it.

It's also illegal to drink while you drive.

Yes, there will be offsets (do Tariffs and slowing illegal immigration increase wages for some workers - likely yes). 

You wouldn't know if it is truly illegal or not without asking the city, which you would not do obviously.

There is nothing illegal about Subject To, Seller financing, etc in general.   

does the section 8 case worker know there is only one person living in the 2 BR unit? 

There were illegal additions in the back of the unit.

There were illegal additions in the back of the unit.