Permits on homes are not transferable so you'd have to go through a lengthy process in hopes of getting a TVR permit, but no guarantees. 

I have a friend who has inherited a house from her deceased mother that needs a lot of work. My friend wants to renovate the house to sell but doesn't have the money to do so. My friend has asked me to partner up with...

I’m not sure what you mean by ‘tactic’ as there’s a valid inspection period written into your contract that the buyer has to perform their due diligence.You can’t just break the contract and walk away without legal ramifications.  

I use Andrew Fisher for all my real estate legalities

Is this legal?

One, they are the ones most trained in the legality of advertising.

Skip the LLC nonsense and spend the money on good insurance.Not legal advice, I am not a lawyer, just my opinion.

the distressed owner laws came in to law in 07 or 08.. if your working with pre foreclosure make sure you book an hour with a very good attorney to understand what you can legally do and not do.we left that space in OREGON and WASHINGTON  as the laws are quite restrictive

But I am not sure if that is legal - I know an owner can rent rooms if they live there but I am not sure of the legality if they are not living there.

Or to use a legal term fraud.