He's looked up recent case law regarding this and the fact that you live in CA means that business is being conducted in the state of CA.

Have you conducted a Rental Market analysis to determine the going rates for similar properties?  

We have a lot of window shoppers that want me to drop everything and run up to a building to show it simply because they are standing in the parking lot and would like to see what the units look like. 

That being said, the time savings of a management company is not yet worth it when I conduct and roi analysis.

If you get yourself rentals, you're conducting a business.

And I definitely agree that proper research must be conducted in all categories before attempting to invest in a particular property.

The issues is, if this happens it would be the 3rd property that I have conducted an inspection on without closing the deal.

E&L is currently conducting primary residence audits only based on complaints.

or is the lender merely conducting a "witch hunt" just for the f--- of it?

I then ask that they cease communications with us.If the behaviour continues, I will speak with the tenant about their parent's conduct, explain the legal/contractural situation and advise that they speak with their parent.It's not just with landlords, my wife use to teach at a local university and helicopter parents were routinely contacting her about their child's assignments and in-clase performance.