If the property was misrepresented in the sale documents, there could be grounds for legal recourse, though this might be more challenging after the rehab.In a similar situation, I’ve seen investors focus on maximizing their returns by operating within the legal limits (e.g., as a single-family or duplex) while still exploring long-term solutions with the city.

Two main reasons being: (1) debt does not increase your basis in an S Corp, which means your losses get limited.

Off grid sounds cool to some, but it really limits your potential guest pool.

Again, I speak from experience. my limited experince at this is a trier of fact will side with the land owner most all the time.I bought a tax sale prop in CA .. these are tax sales not tax certs. 

You’re giving very limited information which forces people responding to cover unnecessary points. 

In our still relatively limited experience, seller financiers are usually looking to get a higher asking price in exchange for the favor of the private loan. 

For added liability protection, consider setting up an LLC for the rental, though this may have limited impact if the mortgage is in your name.This post does not create a CPA-Client relationship.

What is their federal lending limit?  

As to asking the IRS reps, let me limit my comment to just three letters: LOL

Most lenders are going to be limited to 70% of ARV ($560,000 total loan amount) but that means they could fund 85% or a bit higher of purchase price + rehab ($560,000/$645,000 = 86.8%), which is solid.