The listing agent has been stonewalling us, not giving any info.From what I've read on this forum, it seems quite common for Fannie Mae to only discover legal issues with a property after an offer has been accepted. 

Good thoughts @Jay Hinrichs @Chris Seveney @Brady Durr.What about notes as a short term strategy, where I’m taking equity out of a market like San Diego, and placing it in something like notes until I’m ready to invest back into Southern California?

They can’t disclose any discovered urgent motivation to harm the seller or the buyer.

But is the more conventional choice.The 3rd home is a short sale about to list for $650,000 a 3 bed house with an illegal 1 bed ADU in back yard, the ADU rents at $1200 currently and the house would prob rent for $3000. 

I’ve read online and some articles say to short sale but I wanted to see if anyone has any other opinions or can help explain some things.Thanks guys!

That's helpfulSo we bought the property less than 1 year ago if I get the note to partners name then is it considered a short-term cap gains?

This is important because I believe we are getting ready to enter a round of foreclosures and we want to be in a position to pick up prettier properties than we purchased last go round.We are also working on converting our PM business into a franchised brand with Property Management Inc, that has a support structure not only for residential rentals, but also for short term, commercial, and association managment.  

It means he paid the fees and $200 short on rent. 

Along the same lines, I know the county recently passed some laws that permit Airbnb and other short term rentals for a limited number (60) of days per year.

Along the same lines, I know the county recently passed some laws that permit Airbnb and other short term rentals for a limited number (60) of days per year.