I haven't seen the City crack down on unpermitted work with regards to a LTR rental license but that doesn't mean it won't be an issue some day.

Renting is just pushing an issue down the road and can very well become a more costly mistake. 

Current status is that the Dept of Health has not yet issued the Septic Permit yet.

Quote from @William Dorrough: I currently either purchase and value add large scale multifamily properties or develop, and build ground up my issue with scaling is we have done this without brining in investors i have a great deal flow with a good track record im really looking to do more i have the capacity but have the need for more capital in one way or another  Scaling without investors can be tough, especially in multifamily.

Would ownership by a SC entity resolve this issue?

If this had been in your contract and you discovered the issue during the due diligence period you could have been terminating the contract and getting back that $5k EMD. 

.📌 Maintenance Issues?

This also begins YOUR title seasoning, so that when you're ready to take out a traditional mortgage, you can refinance and pay off the seller without a title seasoning issue. you can buy title insurance from the title company at closing. this is a good idea. 

I know there are issues with financing manufactured homes, but I have a lot of equity.

I've won every time that an issue has arisen.