It makes sense, it de-risks the probability of a default.  

@Anthony De La Rosa  I have been involved with a good number of clients looking to house hack here in Connecticut and here is how I would counsel you based on the info you provided.Do you really want to live in a low income area?  

I thought Solar City was supposed to be running by now...

However, I go through the house myself and rely on my 25+ years of doing thisDoing an inspection on a HUD if it is even possible can cost $1000+:-$150 fee to the field service manager to de winterize-Buyer pays all connection fees and back utility fee if applicable-$300-400 for the inspectionKeep in mind with many properties, the FSM Property Condition Report detected a possible leak or electrical issue, so no utility turnons can be done. 

@Paul De Luca That’s the concern what can we tell as per the laws and how to handle this cleaning wise as well.

I already have a CPA and I'm looking at options such as setting up with anonymity in mind with a "parent" LLC in Delaware, for example, which would contain other LLC's/ land trusts in Texas / etc where I will be involved in deals.

Taking legal steps just costs me even more - attorney fees, more holding costs etc.I was also thinking of just going through with the rehab without the permit, but I do have a feeling that de-values the property massively.

My solar company offers a solar 101 class that i speak at on the same night that the REI’s main monthly meeting happens to be on every month. 

Joshua, I will do more research on the Delaware Statutory Trust (is that the DSTs you were referring to?)

They were bigger fish in residential pond but now a minnow in commercial.With a 1031 exchange you could exchange to own directly,look at a TIC (tenants in common) model, or a DST ( Delaware Statutory Trust).