What are the functional issues? 

The issue i'm having is there aren't any recently sold four unit properties nearby to run comps with.

It'll be an issue for buyers coming in and the challenges that come up with them.

The landlord must follow legal procedures, such as issuing a notice to quit, to gain possession." 

The bigger issue, what if the tenant vacates early, due to any of a variety of urgent circumstances?

These days, I’m all in on Google Ads.Hey Yorgev, curious what kind of carrier issues you’re running into?

So the real issue isn't just one thing -- it's the cascading effect of purchase price competition pushing you to thinner margins, then any timeline slip eats the whole spread.Draw delays are real, especially with newer lenders or smaller HML shops.

What is the best way to avoid legal issues when making decisions for this property and to not let him claim anything when selling the property?

I think it is unlikely Torrance was such a location (as there was only a few in southern CA) but do not remember for sure.Building a single small unit is the most pensive residential development costs.Add the other issues with ADUs especially in Ca and ADU additions are typically a poor investment.  

Here are some issues that I have experience and other people have too with hard money lenders. 1.