Hello BiggerPockets People, I manage a small book of for single family rental properties here in Orange County, California.

To properly qualify for the "live in" scenario you typically need to be a resident for at least 12 months, which looks like you are doing.

Seems like we’re finally shifting toward a buyer-friendly market in a lot of areas.I’m still active on off-market deals, so I see a good amount of distressed or discounted stuff moving quietly.

Any suggestions on how to approach that situation? 

You are welcome to contact me at any time and I'm happy to serve you any way I can.  

I would seriously rethink this purchase.

It would have to be when you buy it as I would assume it would be difficult to do it when you 'finish' rehab (would be hard to establish without getting a full appraisal).Say the appraisal comes back and it's a 'surprise' subject to, like you forgot to install your smoke detectors or something, would that group then set the seasoning clock on when the property is no longer 'subject to'?

I am not a legal expert nor a title agent, but that is what I have seen when dealing with divorces in the past from a title and legal framework.   

Would you do it again — or not at all?

and I completely agree that institutional behavior is a key signal.