Regarding number one, while it may or may not be legally necessary (not sure), I think it's a good idea to have a separate account for each entity.

Generally there is consensus that DSCR Lenders can only offer a 1% prepayment penalty for up to 3 years in MI, but some lenders have recently reportedly been flaunting this rule - I would just tread carefully here in this area, generally not advisable to get potentially tangled up in a flawed legal doc with a non-sophisticated or fly by night lender

It makes ADUs under 900 sq. ft. in SF zones legal BY RIGHT, statewide, starting in February.

The next question is whether the property has the zoning to legally operate as a 2 or 3 unit building. 

Exhibit A -a page with the legal description of the property  3.

I sold a property last year that required the owner to get a certificate of nonconformity to be a legal two family.

Taking legal action against another party necessarily involves questions of law and can result detrimental legal impacts on him if he files a lawsuit without proper grounds to do so, or where the opposing party may have counter-claims against him.

For instance my 90 lot subdivision at one point I had 90 legal descriptions and parcels on one master deed.. as I sold them off we just deeded them out separately.. its super common especially in older platted cities were lots might have been small like 25 X 100 and someone bought 3 of them and then built one home on all three.. some places they force merge them others you can go back and recreate the Old lots of record.. there is millions upon millions made by those that know how to find shadow plats and bring to life underlying parcels.

We also are very verse on the Property Code Laws of what legally we must do and what is just good business.So @Ian McClure to answer your question, it would depend on how the new tenant was on boarded and what kind of business the owner runs concerning his property

With the LLC my mom just “does business as” my LLC because I trusted her but I also got her to do that because the legal age in Alabama (where i’m from) is 19.