I have few questions about buying a house "subject to": the owner of the house is kind of under water so by buying subject to, I'll let the owner off the hook from the mortgage by paying it.However, I have to make sure that bank won't enforce due on sale clause when seethe new insurance.Besides, I'll have to assume POS violations and do all the repairs, which is $8-10K, so I can't afford loan to be called off by the bank.So, where do I start with the bank?

As long as your decisions do not violate Fair Housing you should be fine.Good luck!

Once you give them a reason, then they might uncover things about your property that would not have required immediate attention otherwise.Not that I'm advocating violating code, but if the nonconforming item is not a hazard to the tenants or detrimental to the property otherwise, I wouldn't go running to the city and putting my property under their radar!

@Allan Smith the security deposit is forfeited, as per our lease, for any lease violations.

When I look up the ordinance, under San Jose’s new 2017 law, it says landlords must demonstrate one or more of the following grounds in order to terminate a month-to-month tenancy: Nonpayment of rent (excluding rent withheld as permitted by law).Material or habitual violation of the terms of the tenancy.Damage to the rental unit.Refusal to agree to a new rental contract.Nuisance behavior.Refusing access to the rental unit.Unapproved subtenants holding over after the end of the term.Substantial rehabilitation of the rental unit, subject to certain conditions, including payment of relocation assistance and refund of security depositRemoval of the tenant under the Ellis Act, subject to compliance with the new relocation assistance requirements (see below).Owner move-in, subject to payment of relocation assistance and refund of security deposit.Governmental order to vacate.Vacating an unpermitted rental unit.So it seems like you can use these 3 as a tool for getting rents to market rate:Substantial rehabilitationEllis ActOwner Move in Are those the tools you're using?

Deeding the property back to your LLC probably violates the terms and conditions of your loan. 

Make sure it explicitly explains the process for termination if you are unhappy with their services, but especially if they violate the terms of your agreement.3.

Make sure it explicitly explains the process for termination if you are unhappy with their services, but especially if they violate the terms of your agreement.3.

(Try & find a company that does quarterly inspections)5) What is your procedure if a tenant is violating their lease agreement?

If the unit was already inspected and violations were found but no lead certificate issued, then the seller probably gutted the unit so the lead paint would be gone.