Now that we are settling into the property we are finding that I lot of the work was not done to code.

It is zip code specific so accounts for national differences..... https://www.homewyse.com/servi... 

Right zip code, little damage How did you find this deal and how did you negotiate it?

What zip code is that?

The Hawaii market is tough for a first time home buyer along with a fairly strict budget like ours.

It was cancelled that day and I was told it was due to Hurricane Ida impacting my zip code and they had to be sure my home was not damaged.

If it’s in a strictly cash flow type market with limited appreciation potential and uncertain ability to increase rents to create positive cash flow and add value within a year or two, I wouldn’t do it.

I also don't know how Moab city looks at ADU's but I'm guessing they may be more strict than other jurisdictions?

You can't have it both ways, and if you bring attention to the situation you'll probably just cause yourself problems.If I were you, and I intended to keep the 2 illegal units, I would probably provide the 7 leases early on in the refi process to establish "7 rental units" in the mortgage person's mind, and then just hope & pray that you don't get asked for a zoning certificate as part of the process.One other thing I'd say is that, again I don't recommend illegal units, but if you insist on keeping them (as many people do), I strongly recommend you comply with the fire code applicable to the number of rented units in the building.You mentioned two buildings, with a total of 7 units, and you said the building department had them as 3 & 2, which makes me think you have them rented as 4 & 3.If that's the case I would strongly recommend, if I were in your position, absolutely making sure that those buildings conform with the fire code for a 4-unit and 3-unit, respectively.

why NOT use Internal Revenue Code 453aka Deferred Sales Trust the other DSTDeferred Sales Trust Made Simpleon YouTube introduces the conceptreally easily in three min.I'm SHOCKED so many investorshave bought into 1031ingand over paying  forproperties they don't love...