I have already filed a formal complaint with the Contractors State License Board (CSLB) regarding this matter.Given the circumstances, I am seeking your advice on whether pursuing action in small claims court would be a recommended course of action. 

As someone with little capital to invest at this moment, I’m wondering if this is a reasonable (and relatively safe, depending on the deal) option to pursue even if I’m not clearing much in the way of cash flow to start. 

If you come up with a good creative idea or pursue one or more of my suggestions, pm me. 

Cali is a non-recourse state, part of the short-sale negotiation could include the lender not pursuing the deficiency, however if the lender was to pursue it, then filing bk7 would be an option to be absolved from the debt.  

A year of rent sounds great on the surface but I’m wondering why they wouldn’t just pursue a normal year long rental…maybe they’ve been bad renters or have bad credit or low income.

Is it worth it to pursue?

Units will be from 1200 sq ft to 1400 sq ft each.Really would appreciate all thoughts, advice, experience and guidance on pursuing this project further.Thanks again to everyone at BP.

It can take awhile to find one, so you can pursue both at the same time.

If the title company remains uncooperative, consulting a lawyer to pursue legal action may be necessary to resolve this matter and ensure you're not held liable for the previous taxes. 

So at start many don't want to seek or pursue financial independence, they expect it to be bestowed upon them.