Because after purchasing the new rental for $700K that leaves them $300K initially, so take $260K to pay off their mortgage, and still enough left to cover a good chunk of the taxes owed. 

I initially offered $200K in cash, but the seller countered at $240K.

Initially the numbers were 40k for rehab cost Lessons learned?

I'm not a lawyer and this isn't legal advice but I wholesale in 7 different markets and my LLC is just in one state and I haven't had any issues. 

I initially offered $200K in cash, but the seller countered at $240K.

What is anticipated legal costs?

Looks like the founders are trying to raise funds for their legal fees. http://www.gofundme.com/nwaclubLegit or not, I've deciding to pass on it. 

The Yale Law Journal article, "Zoned Out: How Zoning Law Undermines Family Law’s Functional Turn," highlights this issue, noting that while family law has evolved to recognize diverse family structures, zoning laws have lagged behind, potentially hindering innovative housing solutions like co-living.Challenges for Co-Living InvestorsFor real estate investors interested in co-living, these restrictive definitions can lead to:Legal Barriers: Difficulty obtaining permits or approvals for co-living spaces due to non-compliance with traditional family definitions in zoning codes.Operational Challenges: Potential fines or legal disputes arising from housing arrangements that don't conform to local zoning definitions of a household.Market Limitations: Reduced ability to meet the growing demand for affordable, shared housing solutions.Advocacy for ReformThe Bloomberg article, "Why Are Zoning Laws Defining What Constitutes a Family?"

You can pre-screen them for free, then run the credit/criminal background only for those that pass your initial review so you're not wasting time.

Is the basement legally considered living space?