They tell you right at the start in which states you can apply this freely, which states have certain restrictions and which states you cannot do this without a license. 

I suspect the person who originally turned it into a fiveplex only applied for permits to make a fourplex and then did the 5th unit fly by night (perhaps at a later date) in order so the property would still be considered residential and allow for better financing possibilities.

Applying for assistance means YOU get paid and helps YOU.

DIL is a voluntary foreclosure.It is a loss mitigation option you have to apply for and be approved.

Regardless, you might find the copy & paste info below helpful:)--------------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

The ordinary income tax on income passing through LLC-B applies on the income AFTER retirement contribution, home office deduction etc, which will make the income nearly zero and hence leaving only the SE taxes and NO income tax.

There are no problems being a landlord , just buy a property take the first renter that applies and rake in the cash . 

Another consideration which applies only to electric is access to the load center.

What you are asking is a super important question and it doesn't just apply to lenders.

Any excess proceeds not applied to the investment portion may be taxable as "boot."