Cannot get the approval to legalize as it requires a variance, and the building had to conform to 3 or 4 family standards meaning it had to have fire escapes and concrete enclosed furnace rooms.

There was nothing concrete to show a seller.

My suggestion is to not waste any more time and proceed to FC.As far as mitigating the risk of the lawsuit, the best thing you can do is to make sure you and your servicer (as much as you can) are 100% compliant and doing everything by the book.

The DST has the advantage of being 1031 compliant as do the Tenant In Common (TIC structure), and for the most part any NNN stand alone or land lease.  

Also if that someone does miss something that's discovered during an audit, they get fined and not me (obviously a pattern will result in a severed relationship, so I keep everything compliant to the best of my ability so that final QC/compliance package is a slow ball I'm pitching their way that they can knock out of the park).

If you're looking to raise more capital look at doing an SEC compliant 506(C) with a Private Placement Memorandum and Form D as well as a full investor portal including flipbook for your presentation.

My motivation was high, my goals were concrete, and I could take specific action.  

Not necessarily saying this trend will continue, but it is a little more concrete than in 2016.

1) Make sure water pipes are in good shape inside and outside on the property.2) Have a good electrician handy that can add lights and reroute wires/switches.3) Concrete > Asphalt Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

@Robert Leonard I have added photos (here is the link to the updated report - https://www.biggerpockets.com/calculators/shared/1... )Would truly appreciate your perspective.The expense for concrete, in the report, is to address the pool deck.