You should have boiled them down to the following lack of proper due diligence.  1.  

They can limit what property owners can do, including house hacking.Even if the city has no restrictions, if legally binding and properly recorded, covenants can enforce rules that supersede local ordinances for those living within the neighborhood.

This likely means living in Louisville proper, depending on the job's location.

The bear will eat you.Where can I learn to do this properly?

One city near me is checking all garage enclosures, giving nice notice to get them permitted, which they may or may not grant, and if you don't get it properly permitted by December 31, says they will start fining people. 

I help my cleaner in the busy season (although I still can't fold a fitted sheet properly!).  

I'm on the hunt in Tucson as well.  

@Gerald Koonce Private lending from family members is allowed with proper documentation and compliance.

You've possibly stated in writing that you (may have) violated several laws ie. working as a property manager w/o the proper licenses etc. 2.

If you do a proper foreclosure and notify all parties a tax foreclosure can clear up an otherwise scrambled title.