I have my dwelling contractors liscense & company, so I can pull permits for work that needs to be done.

Permits are now required for all STRs, with fees increasing as of June 2024.

In most cases, they learn of the transaction only when a Certificate of Occupancy (CO) application or a permit is submitted for repairs or inspections. 3.

.* In Some jurisdictions takes even 3 months to just get a demolish permit (even though permit expediter can be used)* Because of these 2 above reasons, I would have to come with high money upfront as I would need to buy the property in cash.

I would suggest to check with your local laws first.Most likely you will need permit ( I guess you can get away without, obviously not suggesting that :D)) but possible) , also check your zoning.If not possible to create separate unit legally, I suggest not putting an oven in the basement, and rent it without, or live in it yourself

Did he pull permits?

In the residential 1-4 unit space, efforts are earnestly underway to recreate 2008, for example by calling it a "DSCR loan" but not having any reasonable DSCR requirement. 

Make sure it's permitted, warranted, approved by the HOA, and all that other jazz.I wonder how long it will be before the electrical grid collapses.

The non-permitted unit is causing some troubles in getting this deal to move forward. 

Drop by your municipality's building, permit, and zoning office.