The problems you mention are just known issues.

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.

For the proceeds I have to pay seller I would have to issue him a 1099 right?

A few issues I have faced:1.

So far, zero issues and we have a lot of kids coming.I will say that @Patricia Andriolo-Bull has a point.

Multiple ADUs on any is not allowed, but I have only heard of it being an issue in SF zoned areas or if unit count hits 5.If you want to be sure of getting non-commercial F/F follow the rules. 

Can anyone recommend good companies to root cause  and implement solution to fix this issue?

Living With Tenants Can Be ChallengingSharing your property with tenants sounds great—until you’re dealing with late-night noise, maintenance issues, or awkward run-ins in shared spaces.

I found this deal through a wholesaler in my network and I negotiated with the wholesaler to get a lower price with the buyer because of an issue with an attached empty lot.

Improving grading or having downspouts drain into pipes that move the water away from the house often solve the majority of issues.