Hey Santosh,As of right now you're extremely exposed regarding insurance and I'm going to assume legally as well.If the home isn't registered as a legal multi-family with the town that's something you'll have to correct ASAP and make sure the home is up to code.Insurance wise as soon as they find out what you're doing they'll cancel you as the risk has changed from a single family owner occupied home to a multi family owner occupied home.

I am starting the legal process as we speak and depending how many more we can make this a class action law suit. 

For long-term planning, consider transferring the property into a trust to manage tax and legal complexities.This post does not create a CPA-Client relationship.

I know it’s no longer legal to do wholesaling in SC but let’s say you have the money to buy the property and you can turn it around.

I want to know whether it would work legally for me to buy a home and occupy it for 6 months and then relocate for the maximum time of two years and then return to the property a my primary residence. 

In any contract you don't typically need a clause saying what you CAN do, its assumed you can do anything legally allowed as an owner including sell.

Quote from @Aaron Zimmerman: I would look for other ways to legally reduce income such as cost segregation studies.

So, we decided to ride it out and go through the legal process.

You can provide more details, but there is no legal requirement to do so.

Provide clear instructions on where and how to pay to avoid confusion.Recover Security Deposits: The current property manager is legally obligated to transfer tenant security deposits to you or the new management company.