You would want to verify this claim, but I vaguely remember an architect telling me that adding ADU/square footage to the front of a property is a lot more hassle permitting wise than to the back because the project is subject to public hearing and design review (if I remember correctly, though may be only specific cities in the Bay Area).

You may want to get your attorney or the sellers attorney involved to finalize this tenant issue but you should make sure that if Yuit get it under contract, make sure the contract is subject to possession at close of escrow meaning the seller is responsible for removing the tenant prior to you closing to grant you sole possession.You should also make sure you have a final physical inspection as buying sight unseen with an uncooperative tenant could result in major costs you are not aware of which could ruin the deal.

@Quianay Laing The typical language in most sheriff's/trustee's/foreclosure sales warns that you are buying the property "as is", "where is," including title defects and subject to any senior liens.

As in, subject to deals?

They are planning to sell it this year and I believe it will be subject to capital gains tax on the 42%.

They are planning to sell it this year and I believe it will be subject to capital gains tax on the 42%.

They are funded by the bank or credit union and not subject to Fannie or Freddy.

I love finding great reading material (for ANY subject, really).

If you sell after 5, you’ll get a 10% reduction in the amount of deferred capital gain subject to tax. 

If not then repeat steps that got you your second property.There are better strategies like using rehab loans and buying right to be able to refinance into an investment loan very quickly but this post is meant for the people who are likely to be working with agents and lender that are not knowledgeable about the subject.