Excited to be a part of Bigger Pockets!!

If you are unable to find an issue there, then check the Rules & RegulationsIf the paragraph disallowing this type of rental is in the first three documents I mentioned above, then this is the type of thing that you can petition your neighbors to overturn. 

There was a miscalculation that was caught a closing and cost us an additional 1500 out of pocket.

Guy, this looks like it could be an awesome deal.When you state the three options you're considering, you might need to rethink about Option 1.

I bought my first home in the Bay Area (Sunnyvale) three years ago on a jumbo loan with 20% down and put everything I had into a remodel done partly by me and partly with subs.

@Jonathan Cox what im worried about is that when things start breaking, the property wont have generated the funds necessary to fix the issue without dipping in to your own pockets.

If a third party buys at the auction, a bank doesn’t pay ANY other liens from their proceeds, unless the auction price was More than their debt......and then anything above the judgment amount is not their money anyway, it goes to junior lien holders in a specific state mandated order, and if any is left over it goes to the borrower.On the other hand, if the Bank gets the property back at the auction, Then they typically pay these liens off, out of their pocket, so they can deliver clear title when Selling the REO.

I am new to bigger pockets and to real estate investing. 

Read posts on this site from three years ago forecasting how Denver's market was too hot and was sure to crash. 

My struggle is two-fold.... 1, finding deals in volume, and 2, my private money lender only has pockets that are so deep, and my lines of credit are small....