Most reverse exchanges are done with cash from the client or a private loan of some sort from an individual or a portfolio bank.When your old property sells you will have that cash in your account to purchase the new property. 

And this is just a hair UNDER 17%.

We don't know you, we have no idea how you act under pressure, how much hair a sec8 tenant will have you pulling out or how thick you skin is.

., all sort itself out.  

I didn't even consider the shorter lease strategy as a sort of trial run.

My post above regarding Catskill, NY and designating a host sort of ties to your idea however in this case I don’t think it would work.

But these are the sorts of gaps that people come up with solutions for.

I know it may sound as a BIAS from my side but I think this should NOT be legal to put covenant, see my logic here a builder build a whole community and one part of it is rentals the rest is single family, they put covenants and restrict the market to rent by room just to ensure they can rent their rentals that is a sort of monopolistic behavior and should not be legal.

It's the sort of market that passes every metric or test when you start doing research, though. 

With permit, benefits are 1) get depreciation and other tax write off benefits since it’s a permitted investment purpose ADU, 2) probably better for resell value, 3) have a separate address and don’t have to bother sorting out mails for our legal tenant, etc. without permit; benefits are 1) no hassle to get the permit, 2) no permit fees, 3) no tax on rental income (as it is more like a “roommate”)Has anyone gone through a similar situation before?