Lastly as an illegal unit it is  huge liability if there was a trip and fall claim, fire etc your insurance may not cover.I recommend renters insurance for whoever lives there is mandatory to add another layer of protection. last option not considered is you living in the bonus unit to have a free place to live with minimal risk 

Also, lenders usually require a licensed contractor, bond and insurance. 

No question some of the top firms are hanging in there because of cash calls..

@Jacob NevarezTo make a house hack deal, analyze properties for zoning issues, rental restrictions, deferred maintenance, neighborhood trends, overestimated rents, flood zones, and insurance costs.

We have been able to rent it out with zero vacancies for $3,300 month, with the mortgage, property taxes, insurance and other expenses totaling ~$2,900.

The insurance company sent us a letter telling us they will be dropping us for that reason as well.

It's also good for insurance and legal reasons, because you will need to indicate every adult and all persons, as well as details (like children, pets, etc.), on the lease.  

., 900 SQ FT is TINY, I live 10 min from there and will not touch it .36k gross so about 20k net, ( MAX ) all in 375k, TERRIBLE deal 4% net , again terrible   Actually, the net will be less, Insurance will be about 10k, On top of the 6kish in taxes, and other items. 

You're better off just getting better insurance. 

Maybe insurance will cover it.The property manager can't possibly sit in a rental 24/7 to ensure nobody squats.