If a fencing company shows up you could ask them if they have a permit and a survey.

I'm sure several here has or will have the same issue in areas like mine, there are many multiunits out there. 

If there is only a JV and not a new LLC formed, what forms are issued at the end of the tax year?

Some options I've considered are finding houses with convertible space to add square footage but I worry that the cities will just not permit those conversions.

Depending on the specific details and the local laws, they may not be able to sell the property until you have resolved the issue. 

Mind you, most townships are now requiring owners to apply for Conditional Use permits along with the STR permit. 

@John ThomasIf you want to develop your rental property and reach financial freedom with real estate investments then begin early following these basic steps: research, network with professionals, look for a local market, put together a team of experts in this field, assess your financial situation, specify the criteria for investments, adopt baby steps, get to know all the details about the area where you want to invest money, then invest them or take part in any riveting event after thoroughly examining it.Put together a group of pros—people like farm operators, land agents, building firms' representatives, lawyers who handle real estate law issues or litigators dealing with real estate disputes, loan officers.

It also offers a tax deduction and is a homestead protected against most financial issues or non payment under a Chapter 13 law and a rental is basically a debt burden that if you cannot pay or something happens you get evicted.

We will see what happens but I do not believe the law will end up being interpreted that way, I think the fact that you are marketing real property that you do not own without a license is the issue, what happens at the closing to me is irrelevant to the law itself. 

Honestly, I don't think it is worth using one of those companies unless the house is really in terrible condition and has issues with title, major city liens, is a part of a lawsuit, etc.