Higher rental return= higher pre approval amount.

There are only two legal classes of rental STR are those less than 30 days, and LTR are those longer than 30 days.

Pref Rents are below "legal max" and can potentially remain there forever (or as long as that tenant exercises their legal right to renewals... allowable increases are based on the Pref rent as well.

LLC is just for legal protection here as the LLC is a passthrough entity for tax purposes.

Any advice or relevant legal references would be greatly appreciated!

Of course, you might want to consider the possibility that there is a real legal reason why they don't want anything to do with the problem, like they didn't actually have the right to give you a deed.

I am fairly confident that just the front unit alone will appraise to the sale price.Main problem I have right now is the legal issues with unpermitted units.

Simple answer as to pros/cons:Pros: easier to get approved than conventional without your personal income/employment/taxes/assets/DTI being evaluated, i.e. lighter paperwork and more flexibility, usually faster too.

You cannot (legally) exclude your capital gain when you sell your NJ house next year. 

Legal action- no attorney is willing to take this on?