We are still waiting on rent checks to be shown on the dashboard, there has been a rent dispute with the current tenant and the prior owner (not 365's fault but still has not been settled), and one other issue for something that needed to be patched up. 

I gave my neighbor notice prior to the work and he was cool with it. 

Thank you Peter, I was under the impression from everything I read prior that if the mortgage company's had and interest in the property the would have come forward prior to the tax sale.

If there is a house with a detached ADU, if the main house was built prior to 1978, it is subject to rent control.A buyer can attempt the Ellis Act, which could take months (owner occupied loans generally require the borrower to move in within 60 days) and cost $20,000+.

Ensure your agreement has no pre-payment penalty.In my experience, private money loans (which is what this is, as also previously explained in prior responses) typically come at a higher rate ~ 8%-12%.  

I'm assuming you ran the numbers prior to making the purchase and over estimated the occupancy and rate per night, (along with costs).

I placed new PEX plumbing prior to move-in.

Just do your due diligence on your area prior to buying.  

It is much safer to assume the seller has been cutting back on expenses to boost NOI prior to the sale."

Truth be told, your lender should have looked at the property up front to see that it is an illegal triplex zoned as a single family prior to you going under contract and told that you that it wouldn't qualify for conventional financing...