Cash invested: $40,000 Garage ADU conversion with city permitting.

Of course they have no issue with selling the liens and collecting money from investors, they also have no issues with charging a premium that is non refundable and the county keeping the money.  

As a buyer and you use a hard money loan to purchase and rehab a home the lender should issue a 1098 just as any other mortgage lender holding claim to the title correct?  

Keep in mind that you'll have unique issues with it that WILL have to be addressed at some point if they haven't already...

My MTR is in Mission Beach and is an MTR due to not getting an STR permit in spite of it having been an STR for 24 years prior to the STR quota.  

., I don't know if the town would even permit that and they don't return calls or emails. 

But unless you know and understand the reasoning behind it, and are sure the reasoning applies to you, opening up all these LLCs because "everybody does that" or "that's what my real estate bible told me to do" is a pretty silly way to run a business.Taxes and, I assume, legal issues, are never cookie cutter, one-size-fits-all issues. 

Always check workmanship and permitting when buying renovated.

The process was straightforward, and I didn't run into any issues.

Seems like it’s one of those item where if you don’t spend real money (well over $1K) then there are issues with warping.