Blue, Green, Yellow, Orange, and Red are A, B, C, D, and F, respectively. 

Liens can arise that put the note holder out of their comfort zone or LTV on the deal.

It would probably be worth a phone call to the Garland Planning and Zoning department to ascertain which areas are permitted to have short term rentals. 

I would suggest to speak with a broker or someone familiar with the process and have them review a full package and try to look for any possible red flags in advance. 

I would definitely have a red flag raised for future dealings with this tenant if they didn't own up to it. 

I really appreciate you mentioning it.Expanding on your point about maximizing units: If zoning allows in the target market, would it make sense to consider converting a single-family home into a multi-family unit (e.g., triplex, fourplex)?

Reference : https://www.tiktok.com/t/ZTNs32kbD/also how to know what are zoning restrictions and state code if they adhere to or not ?

JADU is even worse re investment than an ADU.In general ADU additions in single family zones are not decent RE investments.  

The fact that the property manager leased it without collecting a deposit is a huge red flag when they are only placing a tenant. 

Just to be clear for other readers, if a non-citizen wants to buy in the forbidden/registered zone, they cannot buy in their own name so they have to use the fideicomiso (or a Mexican corporation).