They are a team of attorneys and CPAs who specialize in asset protection and tax savings and they work primarily with real estate investors. 

Are there banks or funds who specialize in providing note buyers capital against their existing portfolio?

For this reason, most lenders offer virtually the same products, but there are a few out there that are willing to get creative for you.

They can still be great investments, you just need to be aware of the challenges and special considerations.

Must there most likely be something that I don't know about the house that those guys do or is it possible they didn't do their homework or just did an MLS search of neighborhood without realizing this house was on a special street in the neighborhood? 

Glitter Bomb. https://www.ruindays.com/products/spring-loaded-gl...Seriously though...

In my area of Annapolis, MD—the sailing capital—we have several real estate property management companies that specialize in managing short term accommodations.

It sounds like this is a good case to hand over to a local attorney who specializes in those types of protests. 

He specializes in 50+ units but hes been doing Baltimore City zoning for a little while now and knows his stuff.

@Mitchell LitamThat's concealed grid product that was glued to drywall for sound control.