Yeah, that's a defect and does not conform with code. 

Read that to mean unpredictable, non-conforming use, generally, get ready for some hard (expensive) lessons in this business.

As long they're conforming to the "three rules" (pay the rent on time, don't wreck my place, and don't cause problems with the neighbors/city/county/state/feds) I'm happy.I only do month-to-month leases.

Should your business model necessitate obtaining conforming mortgages for properties you want to acquire, an LLC is of no help.

The longest-term option is just getting a re-fi at 75% LTV for the investment property on a conventional, conforming, non-owner-occupied loan (as long as you don't have too many loans already).

Banks will not give a conforming 30-year mortgage to an LLC, and many more exotic lending products like HELOCs are not available.If you've got your financing in place, I definitely recommend it--not only does it provide some extra tail-end risk protection, it forces us to be more organized and professional as to how we do business.

Has it been approved as 'non-conforming'?

However, the zoning dept. position was that if you removed the existing dilapidated mobile that you break the non-conforming permission.

Since it is likely your purchase is legal non-conforming with respect to current building codes, any insurance needs to covers reconstruction of the structure to current codes - some policies consider code-related improvements as enhancements to the existing building.I would also closely check the co-insurance provisions, loss of rents limits ($ and time), boiler coverage and general liability caps.A good commercial insurance broker can really help assess the specific risks and you may be able to loop in your other properties under the same general liability coverage if you consolidate with one carrier.

But if you want to give the tenants a chance to stay and conform to your expectations, be reasonable.Be fair and firm.