Quote from @Michael Smythe: @Sean Gallagher legally you are correct, but many tenants do NOT know this.We take over properties all the time and close 80% of existing tenants sign a lease with us.True! 

I am also a huge believer that with massive affordability issues in cities people will start to migrate to smaller towns that they can afford.

But structural issues can kill you.

Hey Santosh,As of right now you're extremely exposed regarding insurance and I'm going to assume legally as well.If the home isn't registered as a legal multi-family with the town that's something you'll have to correct ASAP and make sure the home is up to code.Insurance wise as soon as they find out what you're doing they'll cancel you as the risk has changed from a single family owner occupied home to a multi family owner occupied home.

No issues with MTRs in duplexes, triplexes, and quads.

;however, my issue is that I dont have good credit and since im self employed I make.very little income. 

We fixed the foundation and the flat roof issues with pooling water, and rents didn't meet the mortgage just yet.In 2023, we finally started to cash flow.

Obviously one would still need legal and accounting support. 

The issue we are running into is that lenders are not recognizing the excess amount he earns as income, therefore it looks like he will not be able to afford any loans that he would be approved for.

I think communication seems to be the issue here especially with your comment on how the PM is unresponsive.