To Rent or Not to Rent

[Michael Krassos]

Hi all, finally bought my first multi-family in Northern NJ. It is a legal 2-family and I now have both units rented. The rents cover my PITI, but I want more! The property is a colonial with a finished basement. I just invested 5k to do some renovation down there, I posted on Craigslist and have allot of interested for $1,000. Here's the issue, because I am not an owner occupant the town requires an annual fire inspection. I am fearful the inspector will require to get into the basement apartment and realize it is rented. Also, the town requires a permit to park in the street, they address this through requiring a CO for each new tenant. What to do? If I rent the additional funds will make this a 10% return, I'm currently at 6% without the basement. Anybody have experience with how the inspector may react, what the consequences are and possible penalty? Thoughts?