But also consider, if you go back on market, you'll be asked what happened and might get a lower offer than you have.Pro tip: don't make this about who's right and who's wrong.

You picked the wrong kind of property to start in as a 3/3.1 townhouse is not ideal for room hacking and is more residential in nature which is why you should sell it and take the proceeds and deposit money and look for a two-family where you and your brother can live in one side and you can full rent the other side - maybe even as a mid-term rental to 2x the rent.

Am I wrong, anyone who knows about the subject?

Those that oppose regulations on construction and development want to do it the wrong way.

Be careful; the rules for qualifying for a real estate professional are extremely complex - it is an area of the tax code that many practitioners and even judges (tax court cases) have gotten wrong.

The advantage of having the LLC, is it offers you another layer of protection should anything go wrong.

I am newer to this forum so apologies if I am posting in the wrong place but I have a couple questions about purchasing a SFH with an un-permitted ADU.

Theoretically yea the entity is deemed separate, and the courts will hold it separate unless shown you did something wrong or not.

If everything goes wrong, you end up at the high estimate.

Please correct me if anything I say about my plan is wrong and I'm willing to learn/listen to more advices here.I'm currently living in PA will be paying off my house this year (only $20,000 left).