Right now, many MF are sitting for a while because sellers maintain unrealistic expectations of the market.  

This would be if you've reached out to Corporate Housing by Owner, AYA, Vivian, anyone that caters to insurance claims?

assuming work completes after closing.In the event of an audit, is it a red flag if we claim an "improvement" after the closing date occurred?   

However, as a millennial with only 80k in income actually moving into the property and claiming NY residence would have been financial suicide.  

you said he is insured, i guess you are talking to the $10k ish bond only, you could file a claim for what you spent for him not pulling a permit, it is his responsibility to know if a permit is in need or not.

In my research, im finding the watch out is that if we do a quick claim deed, the note could be called due in full.

My other concern is that he is claiming this to 1-stay in the house somehow or 2- withhold rent.

If you don’t, then the LLC could end up being disregarded in a lawsuit and they could still go after personal assets under the claim that you only formed it to try to get asset protection but did not really treat it as a separate entity.

Personally, my experience is in North Carolina and Florida and despite numerous claims of "over-saturation" my clients have performed very well.

I am in the middle of a transaction where I am selling my condo, however I just found out our complex's insurance had changed recently and does not cover 100% of replacement costs due to a recent claim (last year).