The answer to this depends on the local market.

Penalties:Misdemeanor of the first degree: This can result in a maximum imprisonment of one year and a fine of up to $1,000.Civil penalties: You may also face additional civil penalties depending on the specific circumstances.Permitting issues: Local permitting authorities might withhold final approval, revoke the permit, or pursue other actions against you, maybe not give you the CO. 

Depending on where you buy, you might even get new homes with no value add, that you can buy and hold. 

Also would depend on foreclosure costs and time lines.

Lending - depends on if you are lending your funds or you are brokering the deal out. 

It does varies depending on your market. 

@Ricky McCoy - there are shorter time period options from 0 to 3 months depending on several factors, one of which is the city/state your property is in.

With that being said, lots of people choose to rent and it can be very easy to find qualified renters, especially when you buy nicer properties in the nicer neighborhoods. 

However, just like the rest of REI that is going to depend largely on the are you are looking to purchase in.But if you do the numbers right, in most areas, it's absolutely a realistic goal to find a property cheap enough to have the supplemental rental income cover most, if not all, your mortgage costs.Hope that's helpful!

This can build equity and potentially increase rental income through property appreciation.Another option is to sell one or more properties to free up equity and reduce mortgage debt, which can be useful for reinvesting or diversifying investments.refinancing one or more properties to lower monthly mortgage payments and increase cash flow could also be beneficial, especially if interest rates have decreased.the best course of action depends on the clients financial goals and risk tolerance