Accessory apartments are not always legal, and if you don't find a way to pull permits successfully, you could end up with penalties and trouble later. 

My question has to do with the best way to deal with the hassle of building permits.  

Hi BP, I have been looking for vacant homes and have came across several that have a permit sign in the window.

@Justin BranchSince you bought the home over 6 months ago delayed financing isn't in play anymore.So as long as you don't have more than 4 mortgaged properties you can just do a regular cash refinance.This is of course if your C.I.A. ( credit, income and assets permit )Pm me if you have any additional questions or post in public as well.Have a good one.

My initial rehab budget was originally $42k but ended up running about $8k over due to permits and some time delay with the City.  

These are commonly referred to as C classOrder a third-party property inspectionMake sure the property has been rehabbed to turnkey quality that will maximize your cash flow (roof and HVAC updated, ceramic tile it kitchen and bath, vinyl plank hardwood in high traffics areas, durable carpet installed in bedrooms, external fences and buildings addressed during the rehab, supply hoses replaced under the sinks, etc) otherwise your cash flow will go to maintenanceBe skeptical of the one-year tenant warranty, that just means the turnkey provider is making a abnormally large profit who uses gimmick marketing to secure investorsVerify rent range through other property managers, Craig's list and ZillowAsk if permits were pulled during the rehabIf a tenant is in place, ask to see the tenant fileRemember, you can fix the house, you can fix the tenant, you can fix the property manager, but you can't fix the area.  

In a partnership, you are pretty much permitted to divide up gains and losses in any way that you want.  

. § A company offering more than $500,000 but not more than $1 million of securities relying on these rules for the first time would be permitted to provide reviewed rather than audited financial statements, unless financial statements of the company are available that have been audited by an independent auditor;o A description of the business and the use of proceeds from the offering;o Information about officers and directors as well as owners of 20 percent or more of the company; ando Certain related-party transactions.

The key here is, what does the Oakland rent control / just cause ordinance permit you to do?

I have a friend who built one for $20K, around 600 sf, no permit.