Building Codes and Permits: Insights on navigating local building codes and securing permits for this type of conversion would be incredibly helpful.Potential Pitfalls: Are there any common issues or unforeseen challenges I should be aware of when undertaking a project like this?

Still no, the pitfalls can be numerous and there is no upside that I can find.

If you choose to use this technique these are some of the Pitfalls to watch out for.

Are you aware of any pitfalls or "red flags" an investor should be aware of that might prevent qualifying for a conventional in this scenario?

Any potential pitfalls or challenges to watch out for in seller financing transactions.4.

Typical issues that will cause friction: rent not being at market rate, how/when to do updates and repairs, late payments/missed payments, and plenty of other potential pitfalls.

Avoid common pitfalls, embrace continuous learning, and scrutinize deals to ensure their viability before diving in.Let's go!

The pitfall you want to avoid in this scenario is that, even if you have some success, ask yourself if the success was due to luck or your skill.

The pitfalls of these kind of scenarios is generally proving to the IRS that the payment was for actual work done.

Not a good situation.Let's put all that aside for a moment, though, and assume you can avoid all those pitfalls.