I spoke with someone who had a similar issue and proved that the property was being used as a 2 unit rental because they had a lease agreement in place and never discontinued use for more than 3 years since most recent rental license.With 3 units its a bit of a tougher battle.

The one issue is that you can only purchase real estate "Cash" in general as most lenders won't let IRA's take out loans, but I've seen it done if the deal is right.

In that scenario, Fannie/Freddie have a 15% down option (but see above about market conditions) but they still won't lend to an LLC.Now, I feel that transferring your property to your LLC after closing is a non-issue. 

- Foundation issues - should be more obviousWhat else am I missing?

Why would anyone want to deal with tenants and all the issues? 

I've seen that you do a good amount of cleaning them up before you stick a renter in there so perhaps the issue not so much the capex but the property management.Keep killing it! 

I'm also very curious about the permit issues, I always imagined that they would be more lenient about what you do on your property out there, but then again it is NYS!

A few issues I see- raising capital- as you can probably tell, this is not going to be profitable. 

Or perhaps you are all experiencing similar issues?

Most of the family and friends are willing to invest with us as we give them a steady return %...do you see any issues with that ?