Of course if you ask worse case scenario there is always a worse case.. but then logic comes into play.but some folks are nutso about no one knowing what they own or making it hard via public records..

How many empty spaces and what work do those lots need?

MHP has 57 spaces (of which 51 trailers are owned by the park), 100% occupancy, average rent is $500/month, city sewer/water, they pay all utilities, plus they pay the grass cutting bill.

Ben Davis you can get into the 2-4 space with low down payment loans if you can live in it and there’s really no reason not to if you don’t already own property.The 5+ space is a lot different and you do want to learn as much as you can.

You need to get an attorney involved ASAP.Look for someone through the Mass Bar Association who has a track record in defending these kinds of cases. https://www.massbar.org/public/lawyer-referral-ser...My understanding is the same as yours - if a property is not inspected and approved by the local housing administration (the local authority that administers Section 8), then Section 8 renters are not able to rent there.It's just a guess, but if your PM said something like "we don't rent to section 8", that could be the basis of the complaint. 

What are the pitfalls of renting a non-legal space? 

Andrew,From your post it seems that you are the property owner and you are leasing the property to a company that provides Assisted Living facilities to the Public.  

And I have tools and some toys in the garage so I would need some extra garage space ... which an apartment may or may not offer.

Hi Everyone, I'm really new to this space (of Real Estate investing) having just started a couple of months ago.

The purpose of the Multi-Family Residential district, also known as the R3 district, is to provide space for multiple family residential development commonly found in an urban environment.