Saying there are three people living there when only one is on the lease is good to know, but hard to prove; getting video documentation of three people consistently entering/exiting the property substantially alleviates that difficulty.During your due diligence process, you probably obtained a copy of the existing tenant's lease to review.  

Now I guess the OP could make the argument he stepped into the shoes of the 2nd DOT holder but I'm not sure that works when you obtain title via a Trustee's Deed since there are no warranties. 

You do not want to entertain short term renters.

It Is very difficult for an average Californian to obtain financing for the purchase of a primary residence (no house hack) due to higher rates and higher prices in the state.

If you're confident that you'll be able to obtain a lower rate in 6-18 months as rates fall, opt for the smallest prepayment and points option that you can find. 

Thanks in advanceAre you asking about obtaining financing for the $230k down payment needed to purchase the property by assuming the existing mortgage note?  

I am just 3 more tests away from obtaining my Architects license. 

It's possible to anticipate paying between $1,500 and $3,000 annually for each unit, but to fully grasp the range of expenses, it's critical to obtain estimates from several insurance providers.If you intend to keep one unit unoccupied for guests, a triplex could be a more practical and affordable choice.

I am worried not only about escalating costs but also about diminishing profit margins due to delays in obtaining permits.

Plumbing was installed in violation of code requirements in effect at the time of installation....Violation 5: PermitsNarrative: Please obtain the following building permits.1.