@Lily Jensen Getting a HELOC on an investment property is not an issue.

First and foremost, buying more than one property at tax auction is advisable to help you unload those that may have liability issues. 

The city has issued licenses, they are just very limited, hard to get, and there are a lot of restrictions around how it can be used. 

No issue.  

You can file paperwork yourself or as others have stated, hire an attorney.Typically, you'll want to have a notarized affidavit filed or writ of possession issued and signed by a judge.This can vary from jurisdictions so if you are unfamiliar with how to move forward it may be best to consult legal counsel.Legal counsel will typically cost in the low thousands after filing fees, processing fees, attorney fees, court costs, etc.

A costly example could be remodeling information claiming a permit was issued when there wasn't any in the county's records.

If it will be owner-occupied, there are a number of compliance issues to ensure you address (Dodd-Frank, etc). 

There's a very good chance the issue(s) you face have already been discussed and answered.Ask questions in the appropriate forum.

Strong property management and careful tenant placement also play a critical role in success here, so I recommend partnering with a turnkey company or an agent who specializes in these areas to make the process smoother.As for rental demand, homes that sit for extended periods are often the result of issues like pricing, condition, or tenant quality—not necessarily a reflection of the market as a whole.

Hey Catherine have you heard back at all or gotten any resolution to the issue?