Days wind down and now they have a (knee jerk) reaction and buy something non-optimal for a property just to avoid tax penalties.Had they been realistic starting out they would have had time to locate quality properties to buy instead of looking for a Unicorn.

There have been at least 3 studies that show this is true for virtually every large city in the US (you can internet search this).- buy and hold is currently tough in San Diego.  

Without the violations, the unit is just non-conforming, meaning it doesn't meet the current code. 

The problem is that non-government jobs aren't permanent.

It may limit attic space, however you should have plenty of room for Airhandlers, Waterheaters, etc. in the non-living area of the home on the ground floor.

Most LLCs are set up for liability protection or similar non-tax reasons, and especially in CA, the penalties for "non authorized" practice of law are steep that a lot of CPAs will not even form the LLC for their clients. 

I imagine they get their clients by referral, I mean I would'nt want the public applying through some website that's for sure.

Non-profit or not, it will be UW as a business...the non-profit designation doesn't eliminate the lending review, just makes the proceeds non-taxable in order to be put to charitable use.

Perhaps they offer a favorable refinance option if the property has appreciated to the point where the current loan amount satisfies their non physician loan LTV underwriting.

naive and non native speakers can be talked into it simply because they dont know any better.