Nothing in this section shall be deemed to affect the legal status of a secondary dwelling built with a lawfully issued permit if the property is subsequently transferred or sold, or if the one-family dwelling or secondary dwelling is subsequently rented or leased.https://library.municode.com/ca/san_jose/codes/code_of_ordinances?

For $15 grand, I would pursue justice by legal means.

Have a RE agent help you find a condo where the HOA does not restrict less than 30 day rentals. 

Zoning generally prohibits legal grows in residential areas (aside from personal use).  

Do not rely on it for legal advice.

Note:  I am not an attorney or a CPA, and the above opinion should not be misconstrued as legal or financial advice.

Lots of moving parts and it’s good to have someone in your corner getting you to closing.As far as entity structure, it’s always recommended to consult with an attorney and CPA for tax and legal implications.

also its in my backyard so what steps should i take in getting this rented out. like if i left it as is do i need to do anything to legally rent it out or just hook the septic and well up and go for renting it.

Has the developer completed all the legal and technical parts of the subdivision for city of Norfolk or state of Virginia subdivision requirements?

If things are not done clear and legal between you and your brother on this deal it could be the cause for a family feud.