I have had a few people argue with me that as long as you disclose what you're doing, it's fine.

Be forthright bring a solid deal and leave more meat on it than you take and you will be fine.

If you are bound by an early termination clause, send them a letter in writing (email should be fine) stating which provisions they are in violation of, and explain you will let it go if they let you out of your agreement and turn over everything to your new manager. 

It is in your best interest as the property owner to cut the grass before the city fines you.

@Matt Schultz Hard money lenders will typically lend up to 70% ARV for someone doing their first flip so it sounds like you should be fine getting full funding for your property if your numbers are accurate. 

It is fine running one house slightly negative if you can purchase others that are producing full rent with the mortgage you gained from the first.

The licensed legal ones are doing just fine:)

Makes me a bit uneasy and have heard conflicting things like "everyone does it" to "town could ask you to rip everything down and fine you." 

We weren't fined but the cleanup is going to run close to $20K.

I just sold one of my listings to a VA buyer at $2000 above the list price and it appraised fine.