I guess that could be an issue but you could also talk to them about it.

I used to be an Agent attached with a full-service broker.

If audited, it will be an uphill battle. 

You don't need an LLC to be an actual business, and an LLC isn't a guarantee that someone won't be able to go after your personal assets as they're "pierced" all the time by decent attorneys.

My son took the prelicensing course to be an agent when I had my team as big as fifty, but since it was online, he was bored, didn't pay that much attention, and didn't take the test.

If you are getting a loan, this could be an issue so contact your lender asap for a possible work around. 

That way there shouldn't be an issue with a due-on-sale/transfer clause. 

Generally, using comps that are over 12+ months sold are not reliable to be an accurate reflection of current market values.

In the City of LA these unpermitted units typically still end up with a decent amount of construction work to bring it up to current code standards, but if you plan for it, and your budget/proforma allows for it, it can be an acceptable investment.

Would love to buy a fellow investor a coffee to chat over the possibilities.