If you want to fund your firned's rehab deals as a lender, get a broker and stay within the legal areas you need to.

Even though the cashflow is negative now, would it make sense to hold the property for potential appreciation ? 

How do you all handle annual increases to adjust for taxes and potential insurance hikes and would you have them sign a new MTM agreement or add an addendum? 

She refuses to do so, bc he has legal issues and want qualify and meet the lease requirements.

the tenants if they seek legal advice would be told that they can delay and possibly prevent the ADU construction.

Although if you are potentially moving in the next 3-6 months then that might not be the wisest strategy. 

Or what seems crazy to me.Is it legal to create a 501c3 organization to buy investment properties and rent them out at fair market value?

But I would suggest that most of these “programs” put together by the notorious real estate marketing companies located in Salt Lake City, or Las Vegas are well vetted by legal council and do not commit legal fraud on its face.  

I personally created a legally created ADU or mother in law unit. 

It's advisable to complete these repairs before buying the modular home for peace of mind and potential negotiation leverage with the seller.