If you provide the zip code I may be able to give you a more detailed opinion.

If not, you can get them permitted if they were done properly (a pain in the butt), or you will need to bring them up to code (also a pain in the butt).

Saying commercial loans keeps you out of RESPA and related issues but you also have the Uniform Code to deal with.

YOU consider yourself to be "doing the right thing", but the building department official / code enforcement officer doesn't consider it to be that.

I have been scouring a certain zip code ad nauseum for a property.

You can look up sections 7872, 1274 and 483 of the Internal Revenue Code.

@Rachel Gill We have a thing for older properties as well ... which is a good thing as our area is filled with Queen Anne, Second Empire, Victorian, Georgian, & Edwardian era buildings.It is possible to renovate these old buildings, making them moderately energy efficient (as good as a modern minimum code built home) and still maintain some of the period decor.  

Be aware that there are other California code regulations that also must be followed.Most states would consider the sale of fractionalized interests a securities offering, not have a specific procedure for it other than the general securities offering procedures. 34 states have adopted exemptions for private placements similar to the SEC general exemption for private placements.

You would need to install road and utilities, but we'll cover that later.But, send the R2 zoning text (the language of their zoning code) and we can help you determine from there.Thanks.~ Scott

Don’t alter your minimum requirements to fit a potential tenant.