I'd be surprised if the way they are teaching & doing the lending is legal. 

I'm just going to tell him to rent for the first 2 years.He doesn't have any documents, so we are the only ones that can close with them.

Buy a property that perhaps has a legal suite or a duplex.

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.

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.

Documenting erosion severity, prior concerns, and the contractor's assessment could help support a claim. 2.

They should get their attorney to draft documents for you to review such as a loan agreement.

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.

The good thing about househacking a legal multifamily unit is that lender allows you to use the vacated units of 75% market rent as an income to offset the potential current mortgage.