Got approval, but then the appraiser told them a fence permit was still outstanding (he was wrong) and they got cold feet saying that I could be vulnerable to mechanics liens and/or my taxes could go up do to additional improvements I could do with an open permit/inspection.  

There is an outstanding book available on Creative Finance and another on Flipping available here at Bigger Pockets.  

At some point in the next 30-40 days you will need to produce the Articles Of Organization, EIN letter from the IRS, and an Operating Agreement (which can be made on the fly, any lender worth a damn should have a template for the operating agreement because most do not have because it's a sole member LLC so what's the point? 

Despite being less work overall rehab #2 was plagued with funding issues, supply chain problems & an all-around slowly moving market of summer 2022, capped off with an appraisal which came in $100k lower than anticipatedWas able to pull out enough to pay off GC & all outstanding credit cardsPlan is to now pay off both HELOCs w/ agent commissions, having achieved financial freedom via STR incomeListings:2/2: https://airbnb.com/h/rillitopath21/1: https://airbnb.com/h/rillitopath1Lessons learned?

In San Diego, historically your home has produced outstanding return especially if leveraged.  

The buyer is not comfortable with a 10% of the outstanding balance penalty if they pay it off early, but as I look at it closer, even that is not enough for ME to be comfortable selling it owner finance. 

Today converting to STR is so mundane that the STR potential is built into the selling price and therefore typically it cannot be a value add (I do leave room for places such as a casino is opening in 6 months and the sellers have not yet factored the resulting STR potential into the price as an exception).BTW 2021 and its over 20% RE appreciation has helped these numbers, but they were already outstanding. 

I don't care about outstanding medical bills, old foreclosures, and even older car repos.

There are outstanding back taxes from 2007 - 2008. 

Do some damn diligence.