You can check the zoning but if it's a commercial building that's an apartment complex or old hotel turned residential, you can do whatever and the city can't make you come under the permits they require for non-commercial STR properties.

The surviving spouse (not on the lien) tried to file a claim for the fire, but was denied and settlement (complex situation). 

House prices (unless you are talking very expensive homes or apartment complexes) are unlikely to drop $100K.

Hi Justin, you have a complex financial situation, and your questions touch on detailed aspects of how capital gains and 1031 exchanges are treated in mortgage underwriting. 

@Alf Holst I know a property owner who does this for one of their larger apartment complexes, so yes some people do it

Thank you in advance as we all need all the help we can get on the complex world of the tax code. 

Let's say this is a 400 unit apartment complex.  

The investors who are preparing to buy their first property and don't have two pennies to rub together wanting to spend thousands on complexed entity formation for asset protection purposes. 

Sometimes simple is better than complex and in tracking expenses, simple is often the best approach. 

The schools ignore personal finance and business and hence people enter the world totally clueless as to basic concepts of business and finance.  25 years ago when I was financing small investors I made a loan to the purchaser of a small 12 unit apt complex.