Not the ideal environment to show someone else the amenities a property has to offer.

If you don't have one, they will provide one.3) If this  is a sale/lease-back with an owner-occ, there could be major violations with current regulations.  4)  Confusing and high risk.  

Do you guys know of any states that are not regulated or havent made it illegal without a license?

Depending on where you operate there may be regulations that appear to not make a landlord responsible but you do not want to be the landlord that becomes the landmark legal case to change those rules.

I think it more or so has to do with you and the environment in the brokerage you join. smaller firms generally attract more tenured agents that go there to not spend time training newbies.

. $29K per employer (limit changes every year based on regulations).

Then they just work the short con then the long con... and its a target rich environment for those scammers.. they can induce the newer investor who is not familiar with what real rates are or how the lending process REALLY works in our markets...

@Kristine EickmanIn CA, generally speaking, HML's are not governed by RESPA, TILA, DF, SAFE and all those federal regulations. 

There are IRS regulations that came out (effective for 2014 tax years and later - "Tangible property regulations"). 

I am in the exact same scenario described by @Rich McCormak with the same dates, valuation, rental environment, converting at a lower FMV vs purchase price.