Ensure that you check your state's regulations and requirements regarding security deposits.

Make sure you thoroughly know how the regulators view the way things are being done, before committing to a "creative financing" technique.

There is a lot more state regulations and lending laws change when 5 units or great.

@Hamidou KeitaTo build a duplex or ADU in Tucson, verify zoning regulations, obtain construction estimates, budget for unexpected costs, research market rent and vacancy rates, calculate ROI, consider neighborhood and property value trends, analyze construction timeline, consider exit strategy, and consider a backup plan.

Perhaps it is hard for people from the states to understand - but the rule of law, and clarity in regulations etc really makes it so much more attractive than other places where you never know what new policies might come into effect forcing you to take massive loses etc.

The California government will deal with the damage the same way all governments do , they will find a way to raise taxes or get the Feds to pay for it ( that will be difficult with the new administration ) Here is what I find ironic , California has C.A.R.B. to pass regulations on vehicle emissions .

High LTV purchased at retail (off mls) has large initial negative cash flow- regulations are tenant friendly.  

Best bet is to carefully analyze the zoning maps and regulations or just call the town and ask.

Thanks for responding.The model's income right tokens may be subject to a number of SEC regulations. 

If the title company won't respond, contact whoever licenses/regulates them in your state.