Hey @Sahil Rajput, I'm originally from San Francisco, CA and ran into the same issue when I started in 2021.

I have written to the builder asking them to cure this issue, but I must say that this builder has been very difficult to get anything done.

So, simply delaying closing a few weeks eliminates the issue entirely. 

@Kris HaskinsA lot to unravel but if they recorded your deed for purchasing the property prior to the ratification of the sale then that creates issues which the lender should have gone with your closing.The agents and title companies in this are a mess as how did it not show up on title or with the listing agent what was going on.

My tenants have been amazing no issues and they always pay on time or early.

FHA does not permit a LLC to be the responsible party for their loans - MUST be in person's individual name.  

What digging I've done has been in valuing professional services practices (same issue: owner does the "labor", has client loyalty, etc.) as well as medical practices (patients loyal to a doctor more than a physical address).  

Most are fine with that, but a few will have problems with it and claim there are legal issues, etc..

For example, the city of Palm Springs has a hard-limit on the number of STR rental permits it allows (and it has a huge "wait list").

Just make sure you get enough of a down payment to cover issues if you need to take the property back.