House Hack - House with unpermitted rooms but cash flows well

[Royce Anies]

Hi everyone,

I saw a house recently in my area (Bay Area, California) that was 10 bed/ 7 bath with tenants in place on month-to-month leases. The owner is a contractor himself and built the house over the span of 20 years and originally was a 2/1. He's selling his assets now that he is gotten older and has this property on the market. What is everyone's take with house hacking a property with non-permitted rooms? This house is tempting because as per the rent roll the house is bringing in close to 12k a month and as per the landlord 16k  prior to Covid. My dad is considering house hacking it, but obviously we are a little fearful over the lack of permitting.