Relevant link: How Lender Overlays Prevent Deals.

Tracy does a very good job IMO of keeping the content relevant and holds monthly meetings to talk about the latest tips and techniques in the industry.

This is a topic that’s very relevant to me as I own a small amount of property in California and invest mainly in the Midwest.

You may want to look at your contract and find the specific terms for inspections and from there quote the relevant section for the Due Diligence Period as you approach the LENNAR and let them that it doesn't meet the standards in the contract (assuming the contract has the relevant language.)

This implication is if a successful Brrrr results in no Money invested in the property and non negative cash flow when allocating for all expenditures, then price of acquisition is not relevant (because you acquired it at no financial cost).  

Condominiumization is the process of:Legally dividing a multi-unit property into individual ownership unitsCreating a condo map and HOA structureSelling each unit separately while retaining shared ownership of land or common areasThis isn’t new — but under Washington’s updated laws, it’s becoming far more relevant and profitable.📈 Why This Strategy Works NowUnder House Bill 1110:You can build middle housing on a single lot (up to 6 units in many cases)But the resale value is limited if you can only sell the whole building to one buyerCondominiumizing changes the game:Sell each unit to individual buyersCreate affordable homeownership options for first-time buyersUnlock maximum value from one projectExample:A fourplex that might sell for $850K as a whole could instead sell for $325K x 4 = $1.3MMore profit.

However, I was just wondering if I am missing something relevant to my claim or unrelated to my claim.  

I would start by reviewing the relevant terms of your Lease Agreement.

If he did minimum due diligence, he should have been aware of ab1482 and any relevant local ordinances.  

I would recommend talking to a lender, but they should be able to help you out if you have that internship experience and other relevant qualifications.