A well-managed property produces a much greater return than the average investment property.Buy "Every Landlord's Legal Guide" by NOLO.

The program also helped them set up a legal entity for their rental business. 

In the garage space I can put windows where the doors are now to create "legal" bedrooms as they can be egress level.  

If the appraiser does research into the legal property description, they are not going to put any blessings on the unpermitted work.

Just check local guidelines as to what makes it a legal bedroom (typically a heat source, window you can escape out of, and a closet).  

However, the seller claims he purchased the property as a two-unit dwelling based on Baltimore City public records, yet it’s not legally permitted as such.

An LLC is useful for two things: anonymity and legal protection.

I wasn’t picking on the way you said it.Would it shock you that there are attorneys out there now who specialize in going after private lenders, claiming their intended business-purpose loans are really for a consumer purpose and subject to all legal penalties, damages, and consequences?

Quote from @Jeremy Burnheimer: There are six things required to classify a space as a legal bedroom:Minimum bedroom size: At least 70 square feet, but local code may require more.

It has a fence that we verbally agreed we would honor as the property line when we purchased it without a survey and the fence line gives us more space in some areas and the neighbor more space in areas when compared to the legal property lines.