If Planning does determine the existence of your ground floor unit, it will require you to legalize the unit through the existing Planning code process assuming zoning supports the third unit OR using the new ADU program making your fast track condo conversion a passing dream.With regards, to some of your latter comments and questions:1) Any un-permitted work (including corrections) is not a good idea as a quick compliant from a neighbor can bring an inspector knocking on your door with a NOV especially in the current environment where everyone is SIP.2) Legalizing existing constructed spaces can be hit and miss based on the inspector you get.

Now, however, we no longer need that much space.

Thinking of converting this loft space into a functional bedroom to make it a 5 bed 2 bath house for equity. 

You can use neighbor dot com to rent space on existing land with very little hassle, but you do want to do your due diligence on what is needed in the area.

It is one reason JADUs are often pulled for the RE sale- JADU must come from existing permitted space.  

Right now (Q3 2024) everything seems overbanked/overbought.Currently, my focus has been purposely broad but currently split between: A) SF business (wholesaling/rehab) I was asked to take over (on almost no notice – am still badly catching up) and B) Small balance MF and mobile/manufactured housing (<~50-100 units for physical/operational value add)I have made some progress on each but not where I would like to be although I have just recently gotten involved in the sub-institutional space again.

Creative financing strategies can be game-changers for closing deals, especially in the fix & flip and rental space.

So it all comes down to building a MASSIVE organization for this space. 

Currently don’t have the funds nor setup/space to do a house hack but good to keep in mind for the future if the opportunity presents itself! 

If he recently lost someone in his family, he may not be in a mental space to process what you need.