I’m just concerned of legality of basement unit and like you mentioned permitted status.

I keep going back and forth concerning this property. 

Typically those purchasing cash aren't inspecting every home, they're walking it or having their go to GC walk it and already know what they see that may be a concern. 

If they do, you may have a chance under the scenario you're proposing - if they share your concern for it's condition (although that seems unlikely since they've been living with it the way it is for some time, it seems).If you own it, it's pretty lowbrow to expect a neighbor to invest in your property. 

At this point, I'm not so concerned about achieving that exactly, but if my REI journey takes me there on my way to (or even after) financial freedom, then I'm all for it.There's still some work to do to prepare financially for "the first deal" and that moment legitimately appears to be about 2 years away. 

For me the area I was concerned with was estimating costs.

We were on a very quick timeline and were able to get one quote that didn't seem too bad, but we still were concerned about future resale value.

I would recommend that they invest in an inexpensive 'white noise' machine to help muffle the sound but that no property is completely sound proof and the upstairs tenants are well-aware of their concerns and are respectful.Always 'entertaining,' huh?

I misspell myself, :-) but the statutes to concern yourself with are12 United States Code USC Section 1715Z-19and theConsumer Protection ACTand a couple of others if you are interested.  

Hi Sam, I would say that you should consider leaving this deal if you are concerned moving forward.