What are the legal steps to start building a spec home?

Are there any restrictions and risks of renting a SFH for business plus residence purpose?

In the Property Disclosure -> Covenants, Fees and Assesment section, the seller marked YES to Q:Is the property subject to a recorded Declaration of Covenants, Conditions and Restrictions (CC & R"s) or other similar restrictions.No explanation notes were provided.

@Michael V Akbar There is nothing as a dumb question on BP. best to answer the question now than to find yourself in a legal quagmire.

I agree with @Justin Abdilla's approach as these situations can be emotionally driven and may become legally challenging.

It's a very gray line and you really need local RE legal advice here.

PMs have different contracts, and some may be more restrictive than others in what control you have. 

Is such an approach legal?

Home Possible does have certain qualifying income restrictions depending on where the property is located but some areas on the north side have no income limit.

. , in Book , Page(s) , Official Records of the County of Los Angeles, State ofCalifornia, HEREBY APPOINTS AND SUBSTITUTES THE UNDERSIGNED as the new and substitutedTrustee thereunder in accordance with the terms and provisions contained therein, whose address is .As such duly appointed and substituted Trustee thereunder, the undersigned DOES HEREBY RECONVEY to theperson or persons legally entitled thereto, without warranty all the estate, title and interest acquired by theoriginal Trustee and by the undersigned as the said substituted Trustee under said Deed of Trust.