Some scammers are pretty smart and likable.Did the state have a medical claim on the house that is not recorded yet?

I have told them  I'll sue for hotel bills, travel and medical expenses as well as damaged property and floors... but I am holding off ONLY as I know these expenses and court costs will be paid for by my neighbours.The HOA board have finally offered $1700 for a $6000 claim in October 2018. 

Read the exemption at the end.

@Lee Ripma Totally agree about El Sereno, it's right by USC's medical school and has had a solid increase in activity over the past 4 months, with CBRE purchasing a couple acres right in the center.

Its a reason why its known as one of the most shady industries(You can probably make a point for the banking and medical industry as well).

And most states are cool with medical marijuana.Michigan voted for it and North Dakota against it.

Usually it's a category like 'retail', 'warehouse', 'medical', etc.Are there certain traits or characteristics for a building to be deemed medical?

And for capital gains exemption if just the daughter lived there wouldn't she get capital gains exemption sec 121?

If you have lived in that property for 2 out of the 5 years prior to sale you can exempt the first $250K of gain ($500K if married) tax free!! 

Not a deal breaker in most cases, but be sure to be aware of this and discuss with your CPA tax implication that your IRA will owe if you decide to go this route.Self-directed 401k on the other hand is exempt from taxes on leveraged real estate, therefore if you are eligible you may want to explore this option.