This sounds like a question for your local code enforcement guy or an attorney, but definitely not something that anyone on this forum is qualified to answer.

Are the moves to protect yourself/your wife or is it strictly financial?

Based on your experience can you tell me 3 zip codes that are good cash flowing and 3 zipcodes with an appraisal?

For example the house has a section that used to be a sunroom or screen porch and was added many years ago as part of the house and somehow none of this work was done with papers, also the basement was finished with a bathroom, kitchen and non-compliant bedroom but the entire basement is around 6’8” instead of 7” (minimum per code) so inspector is saying that the entire basement was not suppose to be finished and it sounds like he wants it all removed or to apply for a variance that he is letting me know upfront most likely wont be approved.

@Jorge Vazquez They are fiefdoms and the issue is they are a way for people to avoid dealing with their neighbors and  to overlay more restrictions on local code. 

And the 3 year rule relates to hobby income rules and the IRS and 162 and 469 are totally different code sections and I doubt the IRS will ever take the stance someone is renting rentals as a hobby.

These are professionals with additional training and a stricter code of ethics.

While these types of real estate investment are not currently regulated in the State of Florida, we should all do our best to abide by the same ethics code as a Realtor® would. 

I recently viewed a property with an alleyway that only adjoins three houses. It is basically a grass path that hasn’t utilized in years and is very bumpy. I am looking at the middle property and was told the alley wa...

Amy,One of the issues is your bank as they must have strict guide lines or overlays maximizing you at (6) on the W2 side.