I don't feel comfortable building it illegally.

Some lenders may have an "overlay" or may not be comfortable with SRO rental income on a newly acquired property, but I have done transactions using SRO lease agreements.Typically speaking, if you qualified to purchase your primary residence, and you have not increased your debts or had a decrease in income, you should qualify for an investment purchase assuming you have a 25% margin on projected rental income vs the mortgage payment.

They have helped my parents retire comfortably, paid my kids way through college and been a great way to store and build wealth.

Obviously this probably means the end of your real estate investing in that area if you don’t feel comfortable with the higher loan.

If you are looking for an investment it is very helpful to know from the numbers perspective of what you are looking for, strategy, what type of areas you are looking in, condition of the property/how much work you are comfortable with, etc.

This means researching the market, understanding tenant demand, and ensuring the cash flow comfortably covers the loan payments.

When you get a chance, improve the comfort of your rental with improved attic ventilation, spray foam insulation Central Heat- Air Conditioning.

I'm currently comfortable with the amount of leverage I have.

Also, private lenders will be happy to give you funds for small rehabs and that will help you build a portfolio of rehabs so that they feel comfortable to fund larger rehabs for you in the future.We're a private lender, if you have any further questions I'll be more than happy to help you with those.Regards,Jackson

If you can't figure it out or don't feel comfortable, then find an attorney that can handle it for you.