.- 95% of folks in pre or post NOD want to stay in their house, keep their house inspite of them 100% will loose the house at the auction. 

9) adding multiple ADUs or adding an ADU to a quad looses F/F conventional financing.

Another downside is you loose on the advantages, of the Federal Tax Code, by not closing in the name of a LLC (you can elect to have a LLC taxed, as a S Corporation which is a whole other conversation).If you want to close in the name of a LLC, Mortgage Lenders will offer you Commercial Loan Terms (25-30% down, a 15-25 year amortization, and a ballon due in 5-7 years).

So you need to risk paying 1000$ and then you pay like 5000$ or more earnest money deposit with your OWN MONEY. if Jery doesn't accept your deal then you loose your 5Kcorrect me if I'm wrong

The cons as i see it include loosing the 2 of 5 year cap gain exception, typically not an ideal rental because the emphasis at purchase was buying a good home for your family and not a rental with optimal return (my ex-home consistently has the lowest cash flow for equity in my RE portfolio), not disconnected enough from the property causes addition angst on damage and may result in over improvement.  

I'm reaching out to Baselane's leadership to put some sense in them about good banking practices and honoring legally bound leases, that they ended by breaking through this action.

9) adding multiple ADUs or adding an ADU to a quad looses F/F conventional financing.

When you go to sell, Montvale requires a certificate of occupancy so this issue has to be resolved in advance of a sale.Although I am not a lender, I assume you will not be approved for an owner-occupied mortgage on 5-units if it is a legal 4-unit without some type of mortgage fraud whether in reported rents, units, or another legal document or representation (very very large issue from a legal perspective with multiple arrests in the last year for anyone playing fast and loose).As far as the DCA, I would recommend coordinating your work with the city with the DCA.

That may shake things loose. 3.

Just like @Mark Cruse stated I don't want to loose money every month on any investment.