BP team - I have 14 months to properly prepare and plan a massive deal via 1031 exchange to spend $750k.  I will provide as much information as possible, happy to provide more in the reply's.  
FINANCIALS:
We will be ...

It’s a risk because if it’s ever discovered, you could run into trouble with the local municipality, especially if you ever want to sell or refinance the property down the line.That said, since the attic has been functioning as a bedroom for a while without issue, it seems like the risk of immediate fallout is relatively low.

.🔹 Co-Living is Gaining Legal Ground:Colorado eliminated all restrictions on the number of unrelated adults living together statewide as of July 1, 2024, marking a major victory for co-living advocates.This week, Jacksonville Municipal Court ruled in favor of PadSplit, voiding citations for “illegal boarding houses” on constitutional and fair housing grounds.Cities like all over like Washington D.C. are considering zoning reforms to allow more co-living developments as an answer to the housing crisis.As Airbnb restrictions tighten, co-living is emerging as a scalable and legally sound alternative that balances affordability, tenant stability, and community needs.

Since the new regulations were passed, the number of STRs in Chattanooga has declined, and ADR and Occupancy have risen.When you think about it, imagine the devastating impact on a city if municipalities could stop you from operating on a property under the existing zoning laws. 

In my area, if you own an investment propert/non owner occupied, you need to add it to a separate registry and file with the municipality in order to legally collect rent and have backing in case of eviction.

The company went into Bankruptcy and the BK judge ordered that the majority of the lots (about 3,800) including ones already sold and many built on; be organized into one brand new municipality. 

Every CP rehab in 2022  averaged 400 days due to the municipality.

In my view, these added expenses could very well negate some of the financial benefits expected from the tax cuts.Then there’s the issue of municipal budgets.

Be certain that the municipality does not have restrictions, not just the HOA. 

Quote from @Treza Edwards: No-my tenants pay that 100%You said your tenant's pay utilities 100%, BUT are any utilities provided by the municipality?