Looks like previous registrations were entered incorrectly and preferential rents were listed as legal rents.

Quote from @Anthony Britto: Quote from @Jonathan Greene: You will need egress windows to legally have a bedroom down there.

If you can't convert the whole place to a LTR, then let it go and find another place.Having said that, is the place split into 2 legal residences?

I have bought a few houses after reading the foreclosure notices in the legal section of the newspaper but mostly I find opportunities by just talking to people.

I haven't ran into an issue like this before especially if you followed all of the guidelines for it to be a legal bedroom such as bedroom size, entrance size, egress, closet, etc.

Something else to check with your tax and legal advisors.

Please consult a real estate attorney for legal advice before you act on any comments in BP forums.

Skipping legal help here, especially for a 50/50 LLC, is asking for trouble.Disclaimer: While I’m a licensed attorney, I’m not your attorney.

Buy a property that perhaps has a legal suite or a duplex.

They then did the STR model (with permits) and are able to cashflow a substantial amount.However, this only legally works while it's your primary residence.I've got other friends that used their VA loan to secure the rare plex in Alexandria.