It is solid to look at deals that are off-market and know that the ability to buy it at a price and either hold it or sell it will be coming with less competition on the purchase and more upside.  

Rob just updated everything...here is the site he tells everyone to visit for STR cost seg.STR Cost Seg

Learn how to acquire a property, manage the property, and manage projects.

Are there any particular things to check when evaluating such a deal?

That's nothing to write home about...

Some might ask, "who is going to enforce this?"

Ok to summarize it seems that there is Zero way to dodge CA annual fee.

This is what I would be doing and disclosing to the people looking to sue. 

Do you understand how to fix the issue?

As of this morning, WSJ Prime is 7.75%, so I would expect the rate to be over 8% at the very least.