Correct, probably not "illegal" per say but out of scope would be a better word.

Sites like BiggerPockets, Google Reviews, and the Better Business Bureau can provide insights into the lender’s reputation.References: Ask the lender for references from previous clients.

Have you tried talking to him and asking him to take better pictures? 

You could get better cash flow than LTR, and don't have to stick to the legal resort zoned areas for STR.

I think you would position your future self a lot better if you transitioned a good amount of that equity into some cash flowing assets so you can set yourself up for an early retirement. 

Command a better price or don't use a HELOC to fund it.

Most states will award 3x the deposit in damages if you are sued so you better be in legal compliance. 

Source: WikipediaLow crime - A rental property is no better than the jobs around it.

This incident triggered every trouble I'm experiencing now. 1) The officer from LAHD is after me saying that I need to register the property as a rental property and evict her with relocation assistance, which cost about $9000. 2) The Building department is after me with the order to comply: which I believe it might be better of demolishing the house and rebuild it. 

where do I start, Outdated fuel box need to be replace, had to add a French drain due to flooding. etc etc  I think I would of been better off being my own GC doing everything myself.