@Mario Morales if by non-conforming you mean the unit is not legal to rent so not on your tax assessment they may consider that in appraisals. 

Your not licensed to be handling that kind of information legally.

Anyways, even if a gap lender comes in, if it’s even an allowable second position (A lot of lenders won’t do that and Silent 2nds are a No-No) they add so much additional risk to the deal, potential legal ramifications and all around  generally dangerous feet’s.

If you have any legal questions, contracts, financing, etc. 

Go on the offensive and find her responsible, and pursue legal recourse.

She likely can turn to legal assistance for tenants rights, especially if she’s taking care of a handicapped son, so be prepared for resistance.

You can get significant savings for legal and compliance costs in addition to providing one PPM and one K-1 to your investors regardless of how many deals they invest in. 

Sometimes these insurance contracts come in legal sized paper- possibly a harbinger of what you'll need to do to collect fairly from them, But always expect them to perform completely on the things which are in their financial favor.

Probably because someone on BP or YouTube suggested it without any evidence to back their claim.An LLC is useful for two things: anonymity and legal protection.

We do plan to meet with a legal expert but just wanted to sort of understand what we should be doing in general.