Property is exempt from STR permitting because the jurisdiction considers it to be a commercial lodging establishment.We've been pursuing an SBA 504 loan for it, which was going well until we discovered that the sellers have operated it only part-time the last 12 years -- intentionally blocking 60% of available room-nights because they just weren't up for running it full time in their retirement. 

If you discover that she violates that prohibition, of course, a notice to cure should be delivered right away.

I wrote a long piece a while back you might find helpful: https://www.biggerpockets.com/blog/due-diligence-ultimate-gu...Good luck!

I discovered that it is not uncommon for Caribbean homes to have separate living quarters, which gave me an idea.  

The reason you see a person’s name and all their entities listed in a lawsuit is because Plaintiff (the suing party) attorneys have to list everyone and every entity that can be remotely tied to a cause of action, otherwise, if enough time passes and through the legal process discover that a separate entity or just a person was truly liable and they didn’t name them in the lawsuit, they are out of luck.

And there're tons of blog posts and podcasts if you search for them.

https://www.biggerpockets.com/blog/brrrr-loans-what-are-the-...

@Victor Latimer I quickly discovered that dollar for dollar an ADU build for me did not make sense.

Town discovers the addition during transaction U&O inspection.2.

It's crucial to have a team of trusted professionals, including a good real estate attorney, to help navigate these issues.For future flips, consider adding clauses in your sales contract that limit your liability for issues discovered after the sale, especially for systems that were inspected and approved by local authorities.Let me know if you ever are looking to finance your next flip by the way!