Sub-To deals can definitely be more complex in the multifamily space, especially with the due-on-sale clause and lender preferences, but from everything I've gathered, they're not inherently illegal if structured properly.

Additionally, if your goal is to maximize personal financial benefits, consider profit distributions from the property-owning LLC, which may provide tax flexibility depending on your situation.By adhering to FMV, maintaining proper documentation, and structuring the lease agreement carefully, you can optimize tax benefits while staying compliant.This post does not create a CPA-Client relationship.

Seems to me proper notice was not given and no refund is owed. 

Also, take a look at a condo if you really want to be in SB proper, it might be a way to get started, and calculate the insurance and maintenance that an HOA would pay

Same for 2-years of job/income stability.Tenant Default: 10-20% probability of eviction or early lease termination.Section 8: Class C rents usually meet program requirements, proper screening still recommended.Vacancies: 10-20%, depending on market conditions and tenant screening.Cashflow vs Appreciation: Should cashflow immediately, at the lower end of relative rent & value appreciation.Class D Properties:Tenant Pool: Majority of FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, but should have no convictions/evictions in last 12 months.

At least ensure you are getting proper tax advice.C corp and s corp are both US federal tax concepts, not business entities.

Make sure you serve the notice properly. 

I don't want to build the ship after it leaves the port.

Take ownership of your mistake and learn to do the proper due diligence recommended above😊https://www.biggerpockets.com/member-blogs/3094/91097-why-you-should-screen-a-pm-company-like-you-screen-for-tenantshttps://www.biggerpockets.com/member-blogs/3094/91878-how-to-screen-a-pmc-better-than-a-tenant-part-2-communication-and-documhttps://www.biggerpockets.com/member-blogs/3094/91879-how-to-screen-a-pmc-better-than-a-tenant-part-3-the-management-contr

While many of these partnerships can be fruitful, some turn out to be less successful, with unfortunate outcomes that could have been prevented with proper planning and safeguards.For instance, we recently encountered a case involving an investor, or "money partner," who contributed $650,000 to a real estate deal facilitated by another investor, the "developer."