What happens to income from non-conforming units?

[Noah P Bonds]

Property is zoned duplex, but has an additional mother in-law situation that is rented. So three tenants with three leases, but only zoned for a duplex. Very unlikely the city will care. Is there any creative way the income from that extra "sublet unit" can be applied towards my own?

[Noah P Bonds]

@Adam Gollatz

Thanks Adam, I think that hits the nail on the head. I’ve been confused by what lenders say about income and how they can’t really include income from non-conforming units...but in the big picture it still helps your dti. Like I wasn’t seeing the debt forest for the debt tree... spoken with the city about several of these situations and they’re not going after them for now. Just too many of them. I’m not sure about the 2040 - I’ll check I out.