Additionally, the owner's offer to share a copy of his passport, intended as a gesture of transparency, inadvertently contributed to our apprehensions.Given the paramount importance I place on maintaining the trust and security of my client relationships, I chose to err on the side of caution in this instance.

Be prepared to potentially have zero income for many months.In addition, you will want to check the permits.  

I think we need to keep blaming the landlords and introduce additional rent control legislation to fix the issue. 

Our last purchase in the fund was a newly constructed 98 unit Built-to-Rent community with room for an additional 120 units, that we were able to get at a 6% cap rate (a significant discount to the market).Hope to buy a few more deals similar to this one in the fund. 

So, the timeframe is a factor.Selling it at a loss might actually require less additional capital that finishing the rehab in the short term.

Additionally, now in California, a lot of concessions are available for those building student housing. 

Additionally, can you eventually do a BRRRR refinance with a traditional mortgage?

No the park does not require to move it upon sale. the previous owner has been there nearly 20 years. since park rents are rent controlled the park can raise the rent additionally when the owner changes but no more than 10 percent.

I suspect even in Texas a hands off garage conversion ADU addition will be double what the OP specified ($40k to $50k).   

I thought I got everything I needed, only to find out I need to buy additional tax package in order to have them prep tax for me.