I'm only seeing one rule (safety). 

People confuse liquidity with safety in regards to risk.

As mentioned above, the builder is just going to complete any necessary corrective work as part of their pre-close punchlist.Here is an exact quote from one of my builders (49-unit townhome project) from a couple of weeks ago on the topic of third-party inspections:"•We will solve items that fall under the category of our Fit and Finish Warranty or any life-safety issues •Cosmetic or "recommended" items from the inspector may not be considered and are subject to Builder review and discretion."

If there are any concerns with the property that are suspected to be causing a safety issue or potential damage to the property you can enter without notice.

You could be below market to the "average" unit in the zip code but if you're in the glide path of the airport with jets are taking off every 5 minutes, the Taco Bell parking lot lights shine right in the windows, freeway exit is two houses away, a busy fire station is nearby with sirens all night long, etc then the price may still be too high.Are there any safety issues that could be helped with lights, cameras, etc?

Balancing safety and practicality is key.

With ab1482, we do not do rehabs beyond health and safety.  

Have your standard Home/Hazard insurance on the property and your personnal "umbrella" policy for liability.The company itself will be required to maintain their own insurance and each patient/resident under their care will sign a contract with that company, not with you as the property owner.I have a 5 br home in Oahu, HI leased out for the next 3 years to a residential assisted living facility above FMV rent.Biggest thing is making sure that the company does THEIR DUE DILIGENCE in pulling the permits and making any changes to the home in order to comply with the state regulations.

I would suggest that next time you consult your attorney before making such loans to insure all your ducks are in a row, the hazard insurance policy for example should have been done correctly to begin with.

This way they don’t have to uphold the properties or care for the health and safety of their tenants because they know people are desperate and likely won’t be able to afford a lawyer.