Then get hit with the capital gains tax, but then when you buy second property and live in there 2 years and sell, do you get to transfer over the 2 years no tax benefit since you did not use it on the first property?

So you’re going to have utilities, a year’s insurance, taxes, mortgage payments and then the rehab cost.

As a result I went from being willing to allow her to come over and inspect anytime she'd like to strictly adhering to the law.

Here is my expected cost:Land: $475kAcquisition Costs (Environmental, Survey, Geotech, Traffic Study): $25kSoft Costs (Engineering, architect, impact fees, permit, legal, closing costs, taxes, interim interest): $300kSite Development Costs: (Earthwork, underground utilities, curb cuts, fencing, stormwater, paving, landscaping): $800k ($400k/acre)Subtotal before vertical costs: $1,600,000 ($80/SF). 

4th lowest property taxes, no state income tax, landlord friendly, close to Utah, tech and manufacturing job growth.

In other words, a landlord may have been renting a house to 5 people before the new zoning laws were enacted.

I won't presume that they shouldn't have done this, but will state that in most jurisdictions with rental licensing laws thats a big no-no.To answer your questions generally (not specific to Colwyn Darby, PA because I am not licensed there):1) Generally the county will not allow evictions or rent collection actions if a unit is being rented without a licenses.

Ensure you fully understand the tax consequences between LTR, STR, and flipping properties. 

They get taxed in the year they receive their money.  

This means that the income from the property can pay its expenses and generate a pre-tax profit.DSCR formula: Add up the expenses tied to the property (monthly taxes, monthly insurance, monthly homeowners association dues if applies, monthly principal & interest payment.