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?

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

Something else to check with your tax and legal advisors.

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.

This has been discussed alot on here.Some people seem fine with no cable.I have nice vacation rentals and provide an easy way to watch live sports, news etc.I provide cable channels or you tube TV.In my listings I state up front that I provide cable channels because I'm not cheap that if other people won't provide this what else are they cutting corners on?

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.

There is a possibility that you could keep this buyer under contract (for example if he tries to cause you legal trouble) if he is willing to wait (which he will if he is an investor who was underpaying you what you think itis worth As Is. 

I suspect a legal, permitted garage conversion ADU will cost ~6 times your estimate if hands off and probably at least 4 times your estimate if you do the finishes yourself.  

I'm also relieved that I hired a local real estate attorney to help create a county-specific, legal MTR agreement for our house-hacking situation.