OK Thanks Chad.. yes now that you clarify that and I also work in the low value asset sand box but only to Investors who have money to turn them around I would never count on those owner occ's to cure at least at any large % to easy to  walk  and the properties as you mentioned many will be functionally obsolete and economically obsolete so they turn into your basic zombie house that local wholesalers go for ..

It is a very saturated market here as well so definitely worth really digging in to the numbers and finding as many owners here to talk with beforehand.

@Peter W.From my experience, a second-home investment strategy works best when you meet lender conditions like owner occupancy and rental restrictions.

Have a good lease with "teeth" - late fees for late rent, occupancy rules, pet rules and etc. - and do not violate your own lease by being too easy, or very quickly you will not have any lease at all and your tenant(s) will do whatever they want at your expense. 

What you could doIs continue to pay that loan and have the owner also select finance you the balance.

Therefore, you as the property owner would have a state entity assisting in any battle over a safe unpermitted unit.  

@Kim LeduffIn our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.It's often a case of not doing enough research, as they don't know what they don't know!

The Owners Agreement has been a big help as it delineates the exclusive use/rights and shared rights to each area of the property. 

I would actually really like to see the owner/partner Marco Santarelli post here to clear any of this stuff up as I had considered investing with Norada at one point as well.

As the owner of the property that is being severely mismanaged, do I have the ability to move the money directly to my bank through government action?