However, lately, I've been researching co-living and short-term rentals, and I believe the property would be more attractive with a restored pool.

In terms of the lady spending all her time reporting violations... yikes.

Hi Ruth,For STR (Short-Term Rental), MTR (Mid-Term Rental), and second/vacation homes, DSCR Loans (Debt Service Coverage Ratio) are often the best option.

I'm interested in investing in a short term rental the Somoma County market.

I originally purchased this house to be nearby my grandmother in her last few years but realized quickly that it was a prime area for short term rentals as there are no zoning rules or permits necessary etc.

Key things to agree to The interest rateamortizing or interest only loanLength of loanLength of amortization (does not have to be the same as length of loan if there is a balloon payment)When are payments due; monthly, quarterly, annually at the end of the loan etc.Are there any upfront points to be paid and other misc terms like late fees.Then have an attoney create a Note and a Mortgage (or deed of trust depensing on the state)

True foreclosures are all cash purchases so if you don't even want to pay $25 for a list or for access to a good site, you are probably starting a long climb up the wrong tree.

If you will only be able to get a certain quality it won't matter in the long run how things work. 

I will show my loyalty to you, as long as I get it back. 

Assuming this is their natural child, they've managed to build excellent credit for the wife over a long period of time.