What's their take on the physical condition of the home?

Most trustworthy rental managers would also be able to structure a fee-based arrangement for a non-occupied property.  

The bank has nothing to do with it and no say so in the transaction or how its structured as long as they get paid in full.

And might pay more based on fee structure combined with JUST BEING ABLE TO GO SOMEWHERE ELSE to get his $.Very few people know anything about CF.  

How do I structure these deals to be within the law?

A good attorney that understands your goals and business can help you structure partnerships, anonymity, and separation between ventures, financing, etc. 

We can still fund a deal with this type of structure although the funding fee increases, That is why #1 and #2 are preferable choices.

Need advice on how to structure the land contract.

We want someone who can advise us on entity structure and tax strategies as we continue to acquire and self-manage apartment buildings.

The only time I typically see permits checked during a closing is by the title company when they run a lien search, and that's just to confirm there are no open permits that have not been closed out by a final inspection.Also, many interior renovations do not even require a permit (plumbing, electrical, windows, and structural changes certainly do, but not cosmetic stuff such as flooring, cabinets, countertops, painting, light fixtures, etc).My point being, refinancing may be a viable option (it sounds like you were already thinking along those lines).