However, after receiving the survey results, I discovered that the house is located less than 1 foot over the sublot line (see attached image).Here are the options I’m considering:Rent the current house for market value (~$1,500–1,600/month) and convert the detached garage into an ADU to rent for ~$1,000/month.Relocate the house to split the lot, then sell the newly created lot (~$100,000) while renting out the existing house.Relocate the house to split the lot and build a new home on the second lot.Demolish the current house and garage, split the lot, and build two new homes.At this time, I am uncertain about the cost of relocating the house.Questions for the community:Has anyone faced a similar situation?

Explore options like conventional loans, DSCR, seller financing, or partnerships, and connect with local lenders to find the best fit for your strategy.Good luck!

Quote from @Pankaj Malik: I’m just really surprised that the tenant is not taking the option to break the lease break with a $ number offered (1 month rent plus reasonable amount for parts of house he wasn’t able to use) that is within a couple thousand dollars of what he wanted anyway. 

Youre with WAY too many options and decisions at one gulp.

I’m not sure a bank would be your best option but it can’t hurt to try.

If you want more detailed advice, I can provide it.You BEST option is to contact a bankruptcy attorney and find out your other options.

Is spending thousands on a sprinkler system worth it or do I have other options? 

There a ton of great DSCR options you can find on the Lenders tab at the top of the page, or connect with an experienced broker who can shop all the best lenders for you and educate you on the best options out there.

Your options are limited. 1. 

Might it be smarter to offer a slightly lower monthly rent in exchange for a tenant who feels more content.