You were smart to do that. 

The reason to get the permit is it is a smart investment in terms of the value added, appreciation, etc.  

"A smart person learns from his mistakes, but a truly wise person learns from the mistakes of others" - Ken Schramm

absolutely... but be careful... be smart in what you invest in... trust me my friend https://www.biggerpockets.com/...take warning ... be smart... be vigilant

There's asymetrical relationship between cash flow and appreciation.If you are smart, just buy duplex and househacking it or buy SF and househack.

Refinancing into a Commercial LoanRefinancing into a commercial loan to pull equity and move the property into your LLC can be a smart strategy.

These I think are considered rookie mistakes, but I'm all about finding ways to reduce risks from human error.Has anyone else considered technological solutions to help the due diligence process?

People just need to accept it's smart work, timing, etc. to make millions, tens of millions ( no magic pill).

I'm trying to decide the smart investment decision - continue renting it out at a lower rental rate OR selling it and trying to find a potentially better performing asset to re-invest those funds in.  

A smart seller will have note, deed of trust/mortgage/etc. prepared by a local real estate attorney (yes, he/she may work with/at the title company) and be sure the security instrument is properly recorded in the land records.