The bullet in the response that is standing out to me is:"(7) The accessory dwelling shall not be a short-term residential rental, as defined by City Code section 3-2-152(a)(2), for a period exceeding 120 days per calendar year."

I'd consider renting for a period of time and identify a particular area you'd like to eventually buy.

So do I and the rest of us.

typically with seller finance there would be some period of monthly payments and then a balloon where you pay off the balance in full. 

@Arun Philipnot sure if i understand your question.if you don't have any cash, period, you shouldn't be buying any more properties. 

Here is some key information:Property recently hit the market and has 2 cash offers alreadyThe seller provided a pre-inspection report, which I shared with 2 different lenders, both think it may fail conventional financing due to potential structural and electrical issues (realtor thinks it could pass conventional)Seller has 100% equity but is behind on other payments (not sure of the urgency money is needed)This is my first attempt at an “investment” property so I’m new to thisI see 3 optionsMove forward with an offer using conventional loan pre-qualification-Not as attractive of an offer to the seller-Possibility that appraiser calls out structural/electrical issues that need to be fixed before closing, effectively causing financing to fail- Best terms and fewest loan fees for meUse a rehab style loan such as ChoiceRenovation-Even less attractive than a conventional offer to seller, but less risk of failed financing if appraiser calls out issues-Slightly worse fees and interest rates compared to conventional-Lenders tell me possibly up to 60-90 days closing in some cases, with red-tape for contractor requirements and draw schedules (sounds like the most hoops to jump through during rehab)Use a hard money lender-Most attractive loan option I can give to seller so I can compete-Much higher fees and interest rate for me-need to refinance into a conventional at the end of rehab (not familiar with seasoning periods but I think this is a factor as well)Which option would you do?

It can take up to three days to serve, then you can file in court after the 3-day period. 

Some expenses, such as utilities, property taxes, and interest, incurred during this period may also be capitalized.

Use your revenue to pay the mortgage, property management company and expenses then pocket the rest and repeat.  

You absolutely want to be concerned with this.I would just argue what you're concerning yourself with today may be totally different in that 10-20 year period.