Assignor, Seller and Seller’s agent(s) do not warrant that the property meets any currentCity, County, State or Federal building codes, nor the presence of any and all outstandingor pending violations against the property.

Government Programs Look into local government programs or grants designed to help property owners with essential infrastructure repairs.

So, your issue is with the county government based on what you just said because a home built by a licensed contractor would also have not been inspected.I'd be JUST as concerned about a contractor built home with no inspections as I would a homeowner built home with no inspections.

For owner occupied properties federal law requires lenders to verify the ability to repay by the borrower.

How concerned are those of you that have invested with Homeroom about the potential for local governments to shut this type of rental down?

You could reach out to Kevin Kim at Geraci LLP in CA who's firm does securities and PML law in all states and is intimate with CA, OR, WA, and ID laws as well as corresponding state specific financial institutions governance (in WA it's called DFI or Department of Financial Institutions) and how to navigate their expectations accordingly... 

I think the best approach is to have a free and open fast search engine that organizes all the delinquent property lists across all the 3,000 counties and links back to the Source of Truth at the government site.

FTC Suit Leads to $16.7 Million Judgment Against Principals and Celebrity Endorsers of Real Estate Investment Training Program | Federal Trade Commission 

If ordinary income, in NC that will be a tax rate of about 43% between federal and state taxes.

And thanks for reminding me to back fill some detail.Some things off the dome - disclaimer - there may be more:- we review the file for disparate loan amounts (ie underlying lien cannot be more than new)- we assist with getting insurance in place- I stay involved in all my wraps post closing - if needed- we have auto releases in our deed of trust to avoid needing seller when all are paid off- we provide POAs to handle return of escrows and insurance claim proceeds- we advise how to handle re 1098 tax notices- we actually step in if there is overreaching or errors in structure/contracting- we encourage 3rd party loan servicing companies be used- we require the wrapped note to be obtained and reviewed before closing- we encourage an RMLO be used to vet end buyers- we advise of all required state and federal disclosures be usedThat is all I have off the cuff -- but very much looking forward to hearing from others on their risk avoidance measures