From an ROI perspective, there is much more money to be made in development, or investing in the booming short-term rental market in the Southeast where laws are significantly less restrictive (particularly in North Carolina, where municipal permitting is illegal).

I would love to hear from anyone with experience in these areas and any advice you may have for a newcomer. 

Is is possible to put a tiny home on it without getting permits?

Hi everyone, we have a property under contract but we just got informed that there are alterations done to the house without appropriate permits.

Our goal is to convert it back to a 3-4 unit property for long-term and short-term rentals.As I currently reside in Washington DC, I'm unfamiliar with the local permit processes and requirements.

My advice for you (and my future self) so far is:- be very detailed about underwriting your deal- add at least 30% to what you think your rehab will cost (even if this figure came from a GC)- have a really detailed design concept before work starts (including fixtures/trim/color scheme/etc)- check with your city/township's building department and see what permits you need up front- have more than one exit strategy- add a few weeks/months to your projected timeline- purchase cash if at all possible- build relationships, take notes, and learn lessons along the way- have funGood luck! 

However, the initial costs for land, labor, materials, and permits can add up.

Two contributing factors are high construction costs and regulations that make obtaining a construction permit difficult.California already has a large housing shortage.

I also check county and city records for rent permits and any major repairs.

I would start here to see that people are coming to the area and not be as worried with why.I'd also confirm what you need to operate legally such as any permit requirements.