Reading the mortgage or Deed of Trust for both the first and second (wha I buy) to check  for terms of modification if one occurred.

House was advertised as currently single family but with a few modifications could easily be turned into a duplex (one full bath and bedroom added to first floor). 

There is a modification to this plan that can work.  

So some states will require you to have a servicer license, some will say you need a lender license to do a modification, some will have an overall license for someone in the business.For example GA if you buy notes need a lender license, pennsylvania if you are not originating them but buying them you need a servicing license.

@Caleb Heimsoth I have been using the standard lease from real estate agency from New Haven and made some modification as time goes.

Sort of like a loan modification.

The modifications I made to it specifically were in regards to the animals and the appliances.

This type of structure necessitates a pretty solid integration between the provider of the legal platform and the custodian, not a one-time hand-off.We probably get about 10 inquiries a month from folks who have cobbled together a LLC in the fashion you describe, have no access to meaningful support as a result, and are lost and frustrated. 

You may need to make some modifications to the property to ensure that it meets the requirements of the sober living house and is comfortable for the tenants.It's also important to make sure that you are in compliance with all local laws and regulations regarding renting out a property to multiple tenants.

Also, since these are portfolio loans you may be able to get loan modifications as your needs change which is cheaper than refinancing.