Thank you everyone for your inputs especially the point regarding owner not needing permission from the tenant to enter the property  - I was able to work with my realtor, tenants realtor and the builder to gte the 11 month warranty repairs done.

Do you know if the eviction process was started by the owners before foreclosure?

A few years ago I got caught with a number of housing units I built in Philadelphia I planned to sell to owner occupants if not for the  2022 unexpected rate increases.

Must have multi-family zoning and be 500+ feet away from another non-owner occupied STR or you must live in the property for 6 months out of the year. 

The negotiations were tough because after we opened escrow we realized it had five different owners with five different titles.

While we were in escrow, the title company discovered that the owner didn't disclose a second mortgage on the house to neither her agent nor the title company, her plan was trying to dismiss the foreclosure in court and hope this would go away before anyone would find out about it.

It sounds like you will be a successful owner which is amazing! 

Allegedly they were scammed by a fake landlord posing as property owner. 

Build an SMB on top of your real estate (the reverse of #2)Short-term rentals and high owner-participation real estate businesses can have great returns.Obviously not for you if you just want passive RE.We are in the deep end here, where each case should be judged on its own facts and merits by your CPA.You should hire a professional to review your particular situation before you make an investment.

They can limit what property owners can do, including house hacking.Even if the city has no restrictions, if legally binding and properly recorded, covenants can enforce rules that supersede local ordinances for those living within the neighborhood.