However, I go through the house myself and rely on my 25+ years of doing thisDoing an inspection on a HUD if it is even possible can cost $1000+:-$150 fee to the field service manager to de winterize-Buyer pays all connection fees and back utility fee if applicable-$300-400 for the inspectionKeep in mind with many properties, the FSM Property Condition Report detected a possible leak or electrical issue, so no utility turnons can be done. 

@Paul De Luca That’s the concern what can we tell as per the laws and how to handle this cleaning wise as well.

I already have a CPA and I'm looking at options such as setting up with anonymity in mind with a "parent" LLC in Delaware, for example, which would contain other LLC's/ land trusts in Texas / etc where I will be involved in deals.

Taking legal steps just costs me even more - attorney fees, more holding costs etc.I was also thinking of just going through with the rehab without the permit, but I do have a feeling that de-values the property massively.

Joshua, I will do more research on the Delaware Statutory Trust (is that the DSTs you were referring to?)

They were bigger fish in residential pond but now a minnow in commercial.With a 1031 exchange you could exchange to own directly,look at a TIC (tenants in common) model, or a DST ( Delaware Statutory Trust).

I have recently established De Cocky Capital in Swaziland and raising capital seems to be a major challenge.

If you put a property under contract for X, and assign it to someone for Y,  to make the arbitrage of Z,....that to me appears to be a de facto net listing, which is illegal in most states.

If not, you might not need this complication.If you reach the conclusion you need it, then since you are special just for being in CA a simple LLC might not be the best route for you - look into Delaware Statutory Trust.

Learn from my mistake by listening to this podcast interview:http://www.biggerpockets.com/renewsblog/2014/04/10/bp-podcast-065-creative-investing-wendell-de-guzman/I lost money on a 36-unit apartment building which I thought was a no-lose proposition because I bought it dirt cheap.