As long as it's a bona fide gift she shouldn't for that portion.

Yes, as long as you do have a bona fide real estate business.

They rely on motivated distressed sellers who want to sell ASAP for whatever reason, but all the contract does is tie up their property while the wholesaler attempts to locate a bona-fide buyer. 

@Nick DAgostini  If there's a "bona fide" lease, it will survive the foreclosure.Real Estate Law Blog: A Bona Fide Lease Survives a Foreclosure SaleMore reading:Federal: Congress Permanently Authorizes the Protecting Tenants at Foreclosure ActState: California Courts: Foreclosure FAQs

Provide proof of funds from a bona fide financial institution. 

The person has to be a bona fide buyer with the full intent of closing on the property.They state that you can market the contract only. 

@Gbatoh Browne you need apply for a zoning change in the building department.However you should know that there is a good chance it may not be approved, and what could happen instead is that you could be forced to merge the illegal third unit into the second unit to create a bigger townhouse second unit, which would almost certainly be a net reduction in rent vs a bona fide third unit.If you already know it’s only two legal units, I would not suggest buying it on the assumption you’ll be able to keep the illegal third unit, unless those personally talked to the building department yourself and they told you such a use change is likely to be approved.It’s not unheard of for such a change to be approved (e.g., sometimes you luck out and can find proof of the extra unit existing before the introduction of zoning, in the city archives), however it is rare.Usually the issue is that to go up a unit you need to conform to current building code, including lot size and parking, and the lot just isn’t big enough according to current building code.

Based only on my understanding of your issue, the appraiser could have been under a lot of pressure, made a bona fide mistake, but instead of correcting it is either a.) too busy to care or b.) unwilling to care due to the advanced notice requirement. 

California.There are ways to avoid nexus with CA for an LLC owned by a CA resident, but it is most often not feasible as it generally requires ceding all control in a bona fide manner.

For purposes of the immediately preceding sentence, the term "distribution'' shall not include amounts constituting reasonable compensation for present or past services or reasonable payments made in the ordinary course of business pursuant to a bona fide retirement plan or other benefits program.